At the majority of companies, the chief executive officer relies on the human resources department to manage the compensation programs of the business. This process is very involved, and the typical CEO frankly does not have the time to worry about who is getting a wage increase this year. This is not her role and a focus on such details would dilute her ability to lead the company effectively. However, there are certain pay issues that only the company’s primary business leader can properly address.
In a time that the business environment is more competitive than ever before, a company must attract the best talent, create sustained performance and drive consistent profitability; and do it better than everyone else. As a result of this environment, the company’s employee value proposition has to be approached strategically. As a result, the CEO’s role in building a pay strategy is only going to increase.
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