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Tag >> incentive compensation
Jun 15

How to keep bonuses from ruining your company

Posted by SherylNash01 in incentive compensationcheatingcareer/managementbonuses


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.

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