Subjectivity In Incentive Pay
نویسندگان
چکیده
منابع مشابه
National differences in incentive compensation practices: The differing roles of financial performance measurement in the United States and the Netherlands
This paper describes the findings of a study aimed at providing an international replication of a US-based study by Gibbs et al. [Gibbs, M., Merchant, K., Van der Stede, W., & Vargus, M. (2004). Determinants and effects of subjectivity in incentives. The Accounting Review, 79(2), 409–436; Gibbs, M., Merchant, K., Van der Stede, W., & Vargus, M. (2006). The structure of incentive contracts: Evid...
متن کاملCompensation Objectives and Business Unit Pay Strategy
This study investigates the effects of attraction, retention, and incentive objectives on business unit pay strategy. Economic and psychological theories argue that differences in compensation objectives should lead to variations in organizations’ pay strategies, including decisions regarding the level of pay relative to its labor market and the emphasis on different compensation elements. Howe...
متن کاملPaying For Performance: Incentive Pay Schemes and Employees' Financial Participation
We present new comparable data on the incidence of performance pay schemes in Europe and the USA. We find that the percentage of employees exposed to incentive pay schemes ranges from around 10-15 percent in some European countries to over 40 percent in Scandinavian countries and the US. Individual pay and profit/gain sharing schemes are widely diffused, whereas share ownership schemes are much...
متن کاملS-shaped Incentive Schemes and Pay Caps
S-shaped incentive schemes and pay caps are fairly common in practice. This paper demonstrates the optimality of s-shaped incentive schemes and pay caps by incorporating salespeople’s aversion to pay inequity into the standard agency model. Our analysis shows that salespeople’s desire for pay fairness increases the convexity of the optimal incentive scheme at small sales but increases the conca...
متن کاملRevisiting Incentive-Based Contracts
Incentive-based pay is rational, intuitive, and popular. Agency theory tells us that a principal seeking to align its incentives with an agent's should be able to simply pay the agent to achieve the principal's desired results. Indeed, this strategy has long been used across diverse industries-from executive compensation to education, professional sports to public service-but with mixed results...
متن کامل