The issue of setting compensation seems to be struggled with in every organization. Most are pretty lazy about it — hiring someone else to take care of it and failing to think through the incentives they’re creating.
Some companies are different. Nucor, a steel company, under the leadership of Ken Iverson is one of them. Iverson details his thoughts in the masterful Plain Talk. (This isn’t the first time we’ve covered Iverson’s wisdom on running a company. His genius was exploiting unrecognized simplicities.)
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