"Most Activists Not HR Savvy," says Brent Longnecker at Total Rewards 2010 World at Work Conference

    HOUSTON, TX, May 18, 2010 /24-7PressRelease/ -- Activists-driven boards in corporations tend to see Human Resources as an administrator, vendor, commodity; not what it is: a strategic partner. This trend was observed by a speaker at the Total 2010 Rewards World at Work Conference & Exhibition, May 16-19 at the Gaylord Conference Center, Grapevine, TX.

"As elections of corporate boards become more contestable because of majority vote requirements, shareholder proxy access, and the new rule on broker voting, activists have more influence in director elections. And most activists know little or nothing about Human Resources!" said Brent Longnecker (http://www.linkedin.com/in/brentlongnecker), Houston-based consultant with 25 years of leadership experience in executive compensation and corporate governance.

Longnecker says HR's strategy drives the organization capability by attracting, motivating and retaining key employees from a global workforce that is mobile. This workforce drives the business process, which creates customer value and shareholder value.

The most hazardous HR risk: executives being paid at 75% of the peer group while the company performs at the median level, with the board being compensated at the very highest level and employees lagging behind, receiving less than the peer group average.

"This situation is a total mismatch of pay for performance," he observes. "Independent compensation consultants can quickly provide peer group studies to keep your levels of compensation aligned with your industry group."

"What drives the compensation in well-managed companies is the company performance versus its peers, not reaction to activists," says Longnecker. "Challenges for today's HR departments include coping with increased compliance requirements, ensuring that compliance does not crowd out strategic issues. Human Resources should be proactive, not reactive."

As an HR manager, here are tips that can be "career lifesavers," says Longnecker:
1) Get "engaged" with the finance department and CFO, so you can work with them to maximize employee return on investment as a top priority.
2) Get active with the legal departments/chief legal officer so together you can oversee the ethics of the organization and participate in the corporate conscience.
3) Consider independent third-party reviews to protect HR, leadership and the board.
4) Get yourself appointed to Boards of Directors. You might start with not-for-profits and an HR executive should be the arms and legs of the compensation committee on any board.
5) And remember, it isn't going to happen overnight.

"This strategic engagement of HR with their corporations is a marathon, not a sprint," Longnecker concludes.

Brent Longnecker has authored or co-authored over 350 articles and ten books including:
Rethinking Strategic Compensation - http://hr.cch.com/products/productid-3651.asp
Administering Stock Option Plans - http://www.worldatwork.org/waw/adimLink?id=29530
WorldatWork articles - http://bit.ly/cxXPXb
Longnecker & Associates, www.longnecker.com, is experienced in analysis, design and implementation of innovative performance, governance enhancement and cost-savings programs for private and public companies and not-for-profits.

Longnecker & Associates is an independent Houston-based executive compensation and corporate governance consulting firm headquartered at 11011 Jones Road, Suite 200, Houston, TX 77070, 281-378-1369.

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