资源描述：
《Harvard Business School Case Study-executive compensation at GE .pdf》由会员上传分享，免费在线阅读，更多相关内容在学术论文-天天文库。
1、9-105-002NOVEMBER2,2004V.G.NARAYANANExecutiveCompensationatGeneralElectricDeliveryofcarrotsshouldbetieddirectlytoresultsintheareathatamanagercontrols.—WarrenBuffett,astoldtoJeffreyImmelt1IamaCEO…Ilovemycompany.Idonotbelievethelettersstandfor:Cheat,Evade,Overcompensate.—JeffImmelt2Thesumme
2、rof2003wasahotoneinFairfieldConnecticut,homeoftheGeneralElectricCompany,oneofthelargestandwealthiestmulti-nationalcorporationsintheworld.CertainlyitsnewCEO,JeffImmelt,hadtohavebeenfeelingsomeheat.AftertakingcontrolofGEfromitslegendaryleader,JackWelch,in2001,Immeltpresidedovertheslowestgro
3、wthyearindecadesandastockpricehalfofwhatitwasin2000,withnostrongrecoveryinsight.Inaddition,thecompanyhadbeendealingwithbadpressandacrankyattitudefromstockholdersoverWelch’sgenerousthseverancepackage.OnestudyshowedGE’scorporatereputationslippingfrom12to20placein2002,dueinpartto“treatingexe
4、cutiveslikeroyalty.”3TheatmosphereattheApril2003stockholder’smeetingwasadversarial,Immelt’scompensationwasunderscrutiny,andGE’scorporategovernancepracticeswereinquestion.Immeltneededtodecidewhattodonext.AccordingtoaWallStreetJournalarticlepublishedinNovember2003,Immeltsoughtcounselthatsum
5、merfromWarrenBuffett.Duringthelastseveralyears,Buffettchampionedthenotionthatexecutivepayshouldbetiedtolongtermperformanceandthatstockoptionscouldonlyworkiftheywereaccompaniedbymeasuresdeterringexecutivesfrommanipulatingstockpricesforshorttermgain.Buffethadalsopushedforcompaniestoexpenseo
6、ptions,thusraisingvisibilityofsuchpaypractices.OverasteakdinnerinOmaha,Nebraska,accordingtothearticle,Buffett’sadvicewastostayawayfromtyingcompensationtostockprice,insteadbasingiton“simpletargets.”4ShortlyafterthemeetingwithBuffett,thecompensationcommitteeofGE’sboard,chairedbyAndrewC.Sigl
7、er,announcedaradicalshiftinhowImmeltwastoberewarded.Gonewerethestockoptions,stockappreciationrights,andrestrictedstockunits.Whilein2002,Immelthadreceived1ReportedbyMonicaLangley,“InToughTimesforCEOs,TheyHeadtoWarrenBuffett’sTable,”WallStreetJournal,November14,2003.2
