Forget About CEOs, How Should We Pay Employees?

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Capital Ideas is now Chicago Booth Review but unfortunately original articles are no longer available. If you click through you will be taken to the Internet Archive site to find an archived copy.

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.

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