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Turbulence ahead. How to navigate executive compensation in an economic downturn

C J Bolster1, Ron Seifert

  • 1Hay Group, Atlanta, USA. CJ.Bolster@haygroup.com

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Compensation Mechanisms01:28

Compensation Mechanisms

The human body employs intricate mechanisms to counteract changes in blood pH, preventing conditions like acidosis (pH < 7.35) and alkalosis (pH > 7.45). These compensatory responses aim to restore normal arterial blood pH by engaging respiratory or renal systems, depending on the source of the imbalance.
Respiratory Compensation
This mechanism addresses metabolic-induced pH imbalances by adjusting breathing rates. Respiratory compensation begins within minutes of detecting a pH...
Equity Theory01:26

Equity Theory

Equity theory explains how our sense of fairness influences the dynamics of close relationships. Rooted in social psychology, the theory posits that individuals evaluate fairness by comparing the ratio of their contributions to the rewards they receive. Relationship satisfaction is highest when these ratios are perceived as balanced between partners, promoting mutual reciprocity and a sense of justice.Equity vs. Equality in RelationshipsEquity is distinct from equality. Fairness does not...
Dynamic Equilibrium02:20

Dynamic Equilibrium

A reversible chemical reaction represents a chemical process that proceeds in both forward (left to right) and reverse (right to left) directions. When the rates of the forward and reverse reactions are equal, the concentrations of the reactant and product species remain constant over time and the system is at equilibrium. A special double arrow is used to emphasize the reversible nature of the reaction. The relative concentrations of reactants and products in equilibrium systems vary greatly;...
Controller Configurations01:22

Controller Configurations

Controller configurations are crucial in a car's cruise control system because they manage speed over time to maintain a consistent pace regardless of road conditions, thereby meeting design goals. In traditional control systems, fixed-configuration design involves predetermined controller placement. System performance modifications are known as compensation.
Control-system compensation involves various configurations, most commonly series or cascade compensation, in which the controller aligns...
Turbine-Governor Control01:17

Turbine-Governor Control

Turbine-governor control is crucial for maintaining power system stability by balancing turbine mechanical power output with electrical load demand. This mechanism ensures that generator frequency and rotor speed are within acceptable limits during load variations. Turbine-generator units store kinetic energy due to their rotating masses; this energy is released to meet the load requirement when the load increases. The electrical torque of turbines rises to meet the demand, whereas the...