Case Analysis - Allied Electronics Essay
Allied Electronics Corporation Ltd: Linking Compensation to Sustainability Metrics
Dr. Venter and Venter Junior
Robert Venter, second-generation Chief Executive (CE) of family-owned Allied Electronics Corporation Ltd, considered the pros and cons of more clearly linking the firm's compensation system to sustainability performance. In June 2011, Altron, a multinational headquartered in Johannesburg, South Africa, controlled more than 200 companies in Africa, Europe, the US, the UK, Australia, and the Far East. More than 14,000 employees designed, developed, manufactured, and marketed a range of telecommunications, electronics, power electronics, and information technology systems and products. Having made a clear …show more content…
With the new strategy that was being implemented in Altron, a lot of different changes were to be made and Altron faced different challenges in designing the new corporate strategy keeping in mind the 11 new strategic themes. Also, they had to come up with a payment policy aligned with the strategy of the company based with the individual performance of the employee.
There were mixed reviews about the change in the compensation policy of the company, some employees were reluctant to the change of the already existing compensation policy while others were questioning the existing policy and looking forward to the change.
As mentioned in the case, the King III regulation was an opportunity for Altron to rethink its strategy and closely incorporate sustainability into its strategy, something that Venter had wanted since he had become the CE of the company.
Yet again, Johnston steeped up to the task to come up with a case that would allow the company to embed sustainability into the company’s strategy. For this purpose he assembled a team and carried a research on the different aspects that are already mentioned in the above section (why they needed change, risk involved in the change,