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This ties nicely with your prior Centrallized Pay Inventory topic, where you advise auditing all the various pay components. Until you define what you consider normal standard pay and view personal incumbent income relative to that, you can't make intelligent decisions about your base-bonus mix, TC composition, and the amount of pay proper for at-risk status or contingent treatment. You must know your policy and the nature of your desired structure before you can assess residuals or design appropriate incentives. One of Brennan's Laws is "Diagnosis should precede prescription." Gotta know where you are before you change direction.

Jim: I like Brennan's Law that "Diagnosis should precede prescription". That's always been my hard line. What's amazing is the resistance I encounter in some cases (which often leads me to wonder ... just what are they afraid I might uncover?).

Thanks for the comment!

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    Compensation consultant Ann Bares is the Managing Partner of Altura Consulting Group. Ann has more than 20 years of experience consulting with organizations in the areas of compensation and performance management.

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