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Executive Remuneration At Reckitt Benckiser Plc Case Solution

Solution Id Length Case Author Case Publisher
1612 326 Words (2 Pages) Jay W. Lorsch, V.G. Narayanan, Krishna G. Palepu, Lisa Brem Harvard Business School : 104062
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All in all the board of directors and the management at Reckitt were concerned about how to continue the remuneration program while meeting the changing expectations of shareholders i.e. in terms of the valuation of stock options for employees.

Following questions are answered in this case study solution

  1. Identify and discuss the business strategies that are apparent along with HRM/ER issues that flow from those strategies.

Case Analysis for Executive Remuneration At Reckitt Benckiser Plc Case Solution

1. Identify and discuss the business strategies that are apparent along with HRM/ER issues that flow from those strategies.

Reckitt Benckiser is a company that has been known to rely on performance-oriented pay. The company’s growth strategy focused on new products. For this, the company had to recruit and select the best executives to increase productivity. The remuneration plan was simple and relied heavily on performance related pay. The strategy was to remain competitive given the global scale of operations of the company through a lucrative remuneration program. This enabled the company to motivate and at the same time retain talented staff. An issue the company faced was intensified competition from other companies especially Procter & Gamble. Remuneration was therefore considered a major competitive edge for the company. 

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