Designing executive incentives that support safe and healthy work can be tricky. When there is an unavoidable tension between the strategic goals, processes or activities (e.g. production targets and health and safety targets), management needs to clearly identify and actively reinforce their highest priority. So how do you ensure that the priority is health and safety, where there’s a conflict with production / profit? Here are three factors for your consideration when designing executive incentives.
This is Part 2 of a 3-part series into What Makes a Great Board of Directors Who Lead From Their Heart. Today we look at TWO QUESTIONS that a great board of directors would consider when setting the annual bonus and designing executive compensation schemes so that it drives the right behaviour and has a positive impact on safe & healthy outcomes in their business.