Deloitte Consulting Unveils Compensation and Rewards Program That Gives All Employees an Opportunity to Share in the Firm's Profits, As well as in the Benefits of Investment in New Ventures.Business Editors NEW YORK--(BUSINESS WIRE)--June 8, 2000 Deloitte Consulting's new CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Douglas M. McCracken, today unveiled a compensation and rewards program that gives all of the firm's 15,000 employees the opportunity to share in the profits of the firm. The compensation and rewards plan is historic for Deloitte Consulting, which is a private company. All employees - in addition to owners - will have the opportunity to share in the firm's operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. . In addition, everyone will have the chance to share in the benefits of Deloitte Consulting's growing stake in new business ventures. "The goal of the program is to recognize the tremendous contribution made by our client service staff, and internal staff, and to ensure the firm's leadership position as a worldwide innovator of business solutions and services in the e-economy," said Douglas M. McCracken, who officially assumed the role of Chief Executive Officer of Deloitte Consulting this week. "Our new rewards structure is bold, innovative, and differentiated. It strongly positions us to recruit and retain the very best talent around the world." When he was elected CEO in February, McCracken, who previously served as Managing Director of the firm's Americas region, made the new compensation and rewards structure a strategic priority. He then appointed a firm-wide task force of staff at all levels to design the Differentiated Rewards Program. "In true Deloitte Consulting style, this program was developed through a consultative process," said Sabri Challah, Global Director of Human Resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. . "We listened to the views of more than 5,000 of our staff around the world. This collaborative, collegial col·le·gi·al adj. 1. a. Characterized by or having power and authority vested equally among colleagues: "He . . . style is one of our key differentiators as an employer of choice." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Karen Morrell, Director of Human Resources for the Americas region, there are two unique features to the rewards structure. "There is no cap on the profit-share potential for employees," she said. "The more successful the firm, the more profits will be available to everyone - including all client-facing staff and all levels of internal staff. This reflects our inclusive culture and is a significant differentiator." Morrell said that in addition to sharing the profits of the firm, employees may also benefit from the upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar of Deloitte Ventures, the $500 million venture capital fund created by Deloitte Consulting at the beginning of the year. Through the fund, Deloitte Consulting invests time and capital in emerging and established new-economy companies that support the firm's business goals. In addition to earnings, there is the potential for significant gain from these investments through a private sale, an IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. , or a public stock offering. Employees will be awarded profit sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of through "venture units," or v-units, which have a rate of appreciation at least equal to the return that owners get on their investments in the firm. "There is also upside potential associated with the success of Deloitte Ventures, which can add significantly more potential returns," Challah said. "The rewards program enhances our already competitive compensation structure." About Deloitte Consulting Deloitte Consulting is one of the world's leading eBusiness consulting firms, providing services in all aspects of enterprise transformation, from strategy and processes to information technology and human resources. The firm's eBusiness professionals help clients create, defend and/or reinvent re·in·vent tr.v. re·in·vent·ed, re·in·vent·ing, re·in·vents 1. To make over completely: "She reinvented Indian cooking to fit a Western kitchen and a Western larder" their business and economic models by guiding them through the complexities of the evolving digital economy. Deloitte Consulting is part of Deloitte Touche Tohmatsu Deloitte & Touche (also referred to as Deloitte Touche Tohmatsu, and branded as Deloitte.) is the second largest professional services firm in the world, and one of the Big Four auditors, along with PricewaterhouseCoopers, Ernst & Young and KPMG. , one of the world's leading professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. firms, which provides assurance and advisory, tax, and consulting services through more than 90,000 people in over 130 countries. Deloitte Touche Tohmatsu serves nearly one-fifth of the world's largest companies as well as large national enterprises, public institutions, and successful fast-growing companies. |
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