Case | HBS Case Collection | 2006 (Revised from original 2004 version)

Executive Remuneration at Reckitt Benckiser plc

by Jay W. Lorsch, V.G. Narayanan, Krishna G. Palepu, Lisa Brem and Ashley Robertson

Abstract

Reckitt Benckiser plc has developed an executive compensation system. This case outlines the structure of the system, its emphasis on performance-based pay and a global outlook, and explains the role of the human resources department, the board of directors, and company shareholders in determining pay. It raises questions about how to balance incentive remuneration effectively in recruiting and retaining top managers, while addressing shareholder concerns about executive compensation.

Keywords: Executive Compensation; Employee Relationship Management; Human Resources; Management Analysis, Tools, and Techniques; Business Organization; Organizational Structure; Activity Based Costing and Management; Performance Evaluation; Global Strategy; Wages; Business and Shareholder Relations; Recruitment; Retail Industry;

Citation:

Lorsch, Jay W., V.G. Narayanan, Krishna G. Palepu, Lisa Brem, and Ashley Robertson. "Executive Remuneration at Reckitt Benckiser plc." Harvard Business School Case 104-062, July 2006. (Revised from original January 2004 version.)