Compensation systems that increase the equity value of residential mortgage banks

Article Abstract:

Residential mortgage banks must alter compensation systems to achieve maximum equity value before and after going public. Mortgage executives should receive competitive salaries that are also lower than industry average and stock ownership opportunities. Incentives must be controlled by executives and not reflect market volatility or other unpredictable variables. Incentive plans should also encourage executives to increase ownership shares.

Mortgage bankers and correspondents, Planning, Human resource management, Column, Compensation management, Mortgage banks

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Inadequacies of pay-for-performance systems among homebuilders

Article Abstract:

A survey revealed that nearly 70% of homebuilding firms use corporate profitability as a determinant of executive compensation. But homebuilding firms' profitability is often volatile, making profitability, when used alone, a poor compensation determinant. Most homebuilders' pay-for-performance schemes are rudimentary and based on tenuous links between corporate profitability and individual performance.

Residential Building Construction, New Private Nonfarm Housing, Construction industry, Residential construction, Housing

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Performance in the boardroom: how should it be assessed?

Article Abstract:

The real estate industry has a relatively underdeveloped performance assessment process. However, a strong performance assessment process is vital if shareholders are to be assured that directors are operating in a genuinely fiduciary way.

United States, Management, Real estate industry, Employee performance appraisals, Performance appraisals

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