In the older method, executives usually had to lose their jobs to trigger the payouts. In this case Geller's execs got to keep the money and their positions, creating some real stability during the transition to new ownership. Geller is considering a new phantom-stock plan designed to keep the entire senior team on board for as long as possible. All of the people we have hired have taken a pay cut, including myself. I think there's a real risk in hiring superstars and alienating the rest of the workforce.
Salary does count for something.
It is a definitive marker of worth. But in an atmosphere that encourages employers to custom-build creative compensation packages, wages have their limits. None of Horizon's managers did. If you haven't hired a senior manager recently, the salary demands from some candidates can be real eye-openers. Still, Feinblum estimates that Horizon's salaries are only about average for food companies.