Allied Electronics Corporation Ltd: Linking Compensation to Sustainability Metrics Harvard Case Solution & Analysis

Robert Venter, the second generation Chief Executive (CE) of a family allied Electronics Corporation Ltd (Altron), considered the pros and cons more clearly link the compensation system to the stability of the company. In June 2011, Altron, a conglomerate, headquartered in Johannesburg, South Africa, controlled more than 200 companies in Africa, Europe, USA, UK, Australia and the Far East. More than 14,000 employees are designed, developed, manufactured and sold a number of telecommunications, electronics, power electronics and information technology systems and products. Making a clear commitment to sustainable development, Venter was confident that the commitment was common for senior management. However, seems to be more acceptance in the operational units to achieve financial goals than to achieve the goals of sustainable development. Do the existing incentive structure send the right message to the stability-oriented corporate strategy? Looking at the renovated strategic themes, Venter consider the pros and cons more clearly link the compensation system to the stability of the company. "Hide
by Robert G. Eccles, George Serafeim, Shelley Xin Li, Alan Knight Source: Harvard Business School 25 pages. Publication Date: November 8, 2011. Prod. #: 412075-PDF-ENG

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