Pay for (Individual) Performance: A Longitudinal Study of Merit Pay Plans and Firm Performance

CEO Ability, Pay, and Firm Performance

in the wake of the global financial crisis. Recent indignation over seemingly exorbitant CEO compensation in the face of poor company performance have given rise to the question: Does CEO pay accurately reflect CEO ability? If so, does the CEO make a difference to company performance? Practitioners intuitively know the importance of top CEOs, however does academic research concur? Despite its e...

Promotion Tournaments and Individual Performance Pay ∗

We analyze the optimal combination of promotion tournaments and individual performance pay in an employment relationship. An agent’s effort is non-observable and he has private information about his suitability for promotion. Thus, promotion tournaments and individual performance pay need to be combined to serve both incentive and selection purposes. We find that, if it is sufficiently importan...

Self-rated performance and pay satisfaction, merit increase satisfaction, and instrumentality beliefs in a merit pay environment

The relationship of self-rated performance to pay level satisfac tion, merit increase satisfaction, and instrumentality beliefs in a merit pay envi ronment is investigated. Self-rated performance exhibited a significant negative relationship with all three variables beyond that accounted for by control vari ables. Implications and suggestions for future research are discussed. Merit pay program...

Pay for performance.

Pay-for-Performance Initiatives

BACKGROUND: Improving the quality of care provided to beneficiaries while reining in costs, is a key goal for Medicare programs. The emerging payfor-performance (P4P) movement is a reimbursement strategy that provides incentives to improve the overall quality care provided to patients, which can lead to improved clinical outcomes and reduced health care utilization and costs. OBJECTIVE: To revi...