BMW is looking to take it ‘s progressive thinking into the executive compensation realm with this latest policy shift. Business Week is reporting that these changes will be some of the first of their kind in the corporate environment. Here ‘s an excerpt:

>BMW plans to tie executive bonuses to those of its blue-collar workers, in a bid to create a fairer and sustainable compensation environment within the company. Starting in 2010, the company will use a common formula to ascertain and award bonuses to its upper and lower level employees, based on the company ‘s performance as measured by profit, sales and other factors. That means that upper level management could potentially lose more money than their lower level counterparts for bad performance, BMW said.

>A spokesman for BMW said the company ‘s goal was to create fair and transparent compensation practices and to prevent a gap between management and the workers, as the under class, from developing. “We don ‘t just want to build sustainable cars. We also want to have sustainable personnel politics. We think this is good for the company culture, ” the spokesman told SPIEGEL ONLINE. He declined to be more specific on how the formula will work.

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