Blog : compensation plans

Properly Assess the Financial Risk Associated with Your Compensation Plan

Properly Assess the Financial Risk Associated with Your Compensation Plan

In the last blog post, I explained that you are the CEO of your Golden Goose Management Company. One of the most important aspects of the job of a CEO is risk management. CEOs naturally think in terms of risk and try to minimize it financial risk whenever possible.

As the boss you need to view financial decisions and compensation plans in terms of risk. This is another principle that I have had to learn the hard way and I hope you can learn from my mistakes instead of repeating them on your own.

There are two basic compensation plans that I want to use to convey this concept of risk. One compensation plan is where the monthly compensation is paid up-front and the other is paid after the work is complete.

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