Du Pont builds stakeholders

Article Abstract:

E.I. Du Pont de Nemours and Company Inc's fiber department has developed a program which enables employees to have a stake in whether the firm achieves profit goals. Put into effect in January 1989, 900 of the department's 20,00 workers decided to make part of their compensation dependent on company profits. Aspects of the program include: it is based on the performances achieved by the department's 25 businesses; every February employees are paid on a sliding percentage scale based on whether the department has achieved its goals; and it includes all employes at all levels. Du Pont utilized an extensive education/communication program to educate employees about profit-sharing, and the firm has realized that other companies that are interested in developing such a program need to make sure it reflects organizational values.

Case studies, Wages, Wages and salaries

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Nabisco tackles tomorrow's skills gap

Article Abstract:

RJR Nabisco Inc's way of alleviating the current and future shortage of skilled workers is revolutionary. The food company recently unveiled its education initiative that aims to provide employees with financial assistance for their children's education, time off from work to attend the children's school activities, training and rewards for active involvement in educational issues, and cross-training for employees to acquire new skills. According to Nabisco Chmn Louis Gerstner Jr, the accompany embarked on this pioneering program to make sure that all of its employees will be able to cope with the rapidly changing work environment and that future employees will be skilled workers who could perform well in a highly competitive world.

FOOD AND KINDRED PRODUCTS, Cigarettes, Chewing and smoking tobacco, Management, Food industry, Training, Employee training, RJR Nabisco Inc., Employer-supported education, Employer supported education

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Du Pont returns to the drawing board

Article Abstract:

E.I. Du Pont de Nemours and Company Inc ended its innovative incentive pay plan, Achievement Sharing, on December 31, 1990, because of a failure of the company to reach earnings projections and the possibility that changes requested by employees would violate the Securities Act of 1933. The company discovered that changing the plan to permit employees to have a choice in the degree of participation would require the company to divulge confidential business information. The failure of the company to make earnings projections would result in a loss of compensation to employees. As more companies establish incentive pay programs, the Securities Act may need to be amended to make allowance for incentive plans.

Analysis, Laws, regulations and rules, Employee incentives, United States. Securities and Exchange Commission

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