Ben and Jerry Ice Cream

Harvard Business School

9-392-025
Rev. December 15, 1993

Ben & Jerrys Homemade Ice pick Inc.: Keeping the Mission(s) Alive
As Chuck Lacy composed his thoughts to begin with the September 1990 Ben & Jerrys board meeting, he knew that the central finality of the day would set the tone of the company for years to come. And because he was to assume the presidency in January, Chuck felt a special need to put his imprint on that decision. From the beginning, Ben & Jerrys was determined to be a company with a weapons-grade and unique set of values. It wanted to be a strong suit for social change. It wanted to stand for something better than the typical corporation. A key policy exemplifying that intention was the 5-to-1 salary ratio, which visit a maximum spread between the lowest and highest pay employees of five timesâ€"a dramatically narrower differential than the 90 to 1 norm in American business. (See Exhibit 1 for a description of the policy.) The policy aimed to recognize the contribution of lower-level employees and to join top precaution rewards to company-wide compensation. It also made a philosophical statement that corporate America tended to overpay top management and underpay entry-level employees, and that corporations should strive to reduce discrepancies in wealth distribution.



A source of great company pride, this policy had drawn much attention, internally and externally, than any other at Ben & Jerrys. In late years, however, the board and various company members had begun to question its fairness and effectiveness. Ben & Jerrys had grown much larger and more complicated. New positions that needed a higher level of management skill and professionalism were universe created, and the 5 to 1 rule was a major prohibition to offering competitive compensation packages to prospective candidates. Mid-level employees saw moderate incentive for promotion, as salary compression began to equalize middle- and superior compensation. Top management was paid substantially...If you want to get a full essay, order it on our website: Orderessay



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