In detail: More on how bonuses are set for innovation executives
Some of the most interesting responses from our recent compensation survey relate to how bonuses are calculated. More senior executives tended to have bonuses tied to innovation metrics, like the number of concepts in the pipeline or number of pilot tests launched, while more junior executives saw their bonuses linked to overall company performance or their ability to meet goals set for their specific role, like developing prototypes or conducting innovation workshops.
We divided the responses up into three roughly equal groups, by seniority:
1. Leaders – This group typically included titles such as VP Innovation, SVP Innovation, or Chief Innovation Officer. Titles such as “Global Head of Innovation” were also placed into this group, as were executives with C-level titles who also oversaw innovation (i.e., CMO). One quarter of this “Leader” group (exactly 25.0 percent) were C-level executives.... continued ...