SOURCE: Author Dr. Linda Henman

Author Dr. Linda Henman

August 30, 2011 13:57 ET

Five Ways to Tell If Your Company's CEO Earns His/Her Pay

ST. LOUIS, MO--(Marketwire - Aug 30, 2011) - Dr. Linda Henman isn't as concerned about CEOs getting paid large salaries as much as she is about them being worth it.

CEOs earned an average annual paycheck of $11 million in 2010, with pay soaring by an average of 23 percent last year, according to research released by the AFL-CIO in April. As the economy's sluggish recovery has analysts worried, Henman, a consultant for Fortune 500 CEOs, believes that company top dogs who actually earn their money are easy to spot.

"Those at the top have three major responsibilities: Develop the business, grow talent, and make decisions that drive innovation," said Henman, also author of "Landing in the Executive Chair: How to Excel in the Hot Seat" ( "That's why I think it's important for people to understand if their CEO evidences the ability to soar above the competition, because in the end, only the strong will survive."

Henman's top qualities of a good CEO include:

  • Strategy -- Strong strategic thinking defines the effective CEO. These leaders understand how to match a strong strategy with the tactics and talent to see it through.

  • Decisions -- When CEOs consistently make good decisions, little else matters; when they make bad decisions, nothing else matters. A decisive CEO who can't hit the target is the same as an indecisive CEO who doesn't even know where to find it. The results are the same.

  • Hiring -- Successful CEOs know how to tie talent to their strategies so they ensure the company hires the best and the brightest and compensates them fairly. Moreover, they give these people a chance to thrive.

  • Excellence -- Leaders who attract and retain top talent stress excellence. They focus on good execution of plans and strategies, and they don't skew the mission by placing value on tertiary issues that have little to do with execution of strategic goals.

  • Results Orientation -- Too many executives talk about how to motivate the troops. Those who excel in the hot seat do better. They hire people who are self-motivated, define clear objectives, hold people accountable, and then they get out of the way.

About Dr. Linda Henman

Dr. Linda Henman holds a Ph.D. in organizational systems, two Master of Arts degrees in both interpersonal communication and organization development, and a Bachelor of Science degree in communication.

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