Vanessa Sumo, Hal Weitzman, Michael Gibbs
Subjective evaluation by supervisors can address the shortcomings of numeric measures. When numeric measures focus employees on one goal, a second, subjective bonus can make employees pay more attention to other objectives that may be difficult to quantify, like managing controllable risks. If a plant manager’s bonus depends on profits alone, he might postpone maintaining equipment. A supervisor can motivate the plant manager to consider … [ Read more ]
Content: Quotation | Authors: Hal Weitzman, Michael Gibbs, Vanessa Sumo | Source: Capital Ideas | Subjects: Human Resources, Management, Organizational Behavior
Are CEOs Overpaid? The Case Against
Steven Neil Kaplan, Neubauer Family Distinguished Service Professor of Entrepreneurship and Finance at Chicago Booth, is making a sometimes–unpopular but data–driven case in defense of high–earning CEOs. Kaplan has written a string of papers challenging the common views that executive pay isn’t tied to performance, that boards rarely punish underperforming CEOs, and that average CEO pay keeps going up.
Instead, he argues, the market for … [ Read more ]
Content: Article | Authors: Hal Weitzman, Vanessa Sumo | Source: Capital Ideas | Subject: Corporate Governance
Forget About CEOs, How Should We Pay Employees?
Subjective evaluation by supervisors can address the shortcomings of numeric measures. When numeric measures focus employees on one goal, a second, subjective bonus can make employees pay more attention to other objectives that may be difficult to quantify, like managing controllable risks.
Content: Article | Authors: Hal Weitzman, Vanessa Sumo | Source: Capital Ideas | Subjects: Human Resources, Management, Organizational Behavior