Pay Practices in Fortune 1000 Corporations

E. Lawler and S. Mohrman
May 2003

Are the reward systems in major US corporations changing? As part of its triennial survey of organizational performance improvement efforts, the Center for Effective Organizations has gathered data on the pay practices of large corporations since 1987. The results of the five surveys from 1987 to 1999 show, among other things, the tendency for corporations to increase their use of pay for performance systems, and the decline in the employment security commitments of corporations (Lawler, Mohrman and Benson, 2001). The period from 1999 to 2002 was one of considerable change in US corporations. The dot-com bust, corporate scandals, and increasing concern about stock option overhangs all occurred during this period. In order to track how much these and other events changed the pay practices of large US corporations, the Center for Effective Organizations conducted its sixth triennial survey of employee involvement and reward system practices in 2002.