Willamette Industries: “No Pay at Risk” Compensation
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Publication Date:
August 01, 1998
Industry:
Engineering, Construction & Infrastructure
Industry:
Manufacturing
Source:
Stanford Graduate School of Business
Willamette Industries, a large wood products and pulp and paper manufacturer, has traditionally not used any short-term pay at risk as part of its compensation approach. That means there are no sales commissions, gainsharing, or short-term bonus payments to anyone anywhere in the firm. David Morthland, the vice president of personnel and industrial relations, has been asked to reexamine these practices in the context of trends in industry at large toward the greater use of contingent compensation. The case outlines the rationale for Willamette’s current pay practices in light of its particular culture, business strategy, and other management practices. Can be used by itself or with other cases illustrating different pay practices to stimulate a discussion of the pros and cons of various approaches to pay.
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Willamette Industries: “No Pay at Risk” Compensation
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