Variable compensation is effective. However, it must be steered in the desired direction – through short- or long-term incentives, through cash or share settlement, by means of profit, cashflow, return or other financial indicators, with or without a share basis, and with or without deferrals. Companies must handle issues relating to variable compensation within a general, overall framework. Calibration based on historical and forecast data is necessary. And a clear decision about the underlying performance parameter is needed: Is it the budget, the previous year's result, or the strategic plan?


hkp/// group offer broad expertise and years of experience in designing compensation systems. We are experts in all areas from comparing the compensation system with strategy and external regulations to implementing it in records, planning documents, contracts, and decision-making and information materials for supervisory boards. Our consultants inform about changes taking place in the market, present the various alternatives and explain their implications. We also look at the bigger picture, ensuring that your compensation and career development systems back up other steering systems at various levels of the company.


Drawing on broad expertise in financial management and comprehensive experience in employee development, hkp/// offers professional help to companies introducing monetary steering systems for their staff.

Author Michael H. Kramarsch

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