Finding the pay-for-performance sweet spot

04/23/2009 | Business Insider

Pay-for-performance compensation plans can be disastrous when taken to extremes, writes John Carney, because they can discourage risk taking. Employees need to be worried about increasing shareholder value, not preserving their own paychecks, Carney writes, an impossible feat when a worker knows they can lose everything if a single deal goes badly.

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