topleft
topright

Login or Register


Red-Hot Thread

"The corporate brand is not only used to improve competitive positioning and express company aspirations, it can also be a powerful tool to motivate employees."

CFOZone Experts

Opinions and views from expert CFOZone members.

Tag >> incentive compensation
Jun 15
2010

How to keep bonuses from ruining your company

Posted by SherylNash01 in incentive compensationcheatingcareer/managementbonuses

SherylNash01

As everyone knows, incentive compensation is a two-edged sword: Such pay can incentivize the wrong as well as right type of risk taking. That is, the prospect of a bonus may motivate employees to game the numbers instead of improving a company's actual returns. The latter is obviously a plus for a business, the former a negative to the extent it fools management into overpaying for poor performance.

Now a new study shows the risks of such compensation schemes is greater than the rewards.

Copyright © 2009-2014 CFOZone. All rights reserved. CFOZone is a property of PSN, Inc.