On this page you’ll find research on how various ways of paying and promoting employees leads them to behave more or less ethically.
AREAS OF RESEARCH
- Two to five bulleted sub-areas for focus
CASE STUDIES
A)FAILURES
- Two to four links to example cases; can be a placeholder for now
B)SUCCESSES
- Two to four links to example cases; can be a placeholder for now
IDEAS TO APPLY
- Two to four key takeaways for academics and/or business people; each should be one to three sentences.
OPEN QUESTIONS [areas that need research]
- Two to five questions for more investigation
TO LEARN MORE
- Two to six books, articles, videos, etc.
This page is overseen by resident expert XXXX, although other contributors may have added content.
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Miscellaneous Links & References
The Shareholder Value Model
This is the reigning model for thinking about the duties of corporations, and for how to reward executives. It was developed and popularized by Milton Freeman, for example, in this article. [link]. It says that executive pay should be “aligned” with shareholder interests by rewarding executives primarily for raising the stock’s price. But…. [then briefly summarize Stout’s argument, with links to her work]
- Westpac moving away form sales targets for staff, (Sydney Morning Herald Business). “Breaking the link between targets and annual salary has the potential to start a long-overdue culture shift in our industry.”
- Financial crisis and bank executive compensation. (Bhagat & Bolton 2014).”We recommend that bank executive incentive compensation should only consist of restricted stock and restricted stock options”
- Motivating people: Getting beyond the money. In McKinsey Quarterly
- Paul Krugman, and Andy Lo, on how the “2 and 20” compensation of hedge fund managers incentivizes them to take on high leverage and high risks, because high variance in returns nets them a windfall on the upside, while still earning 2% on the downside.
- Incentivizing employees with “prosocial bonuses” spent on charities or coworkers.
- Giving bonuses can increase cheating without improving productivity (Gill, Prowse, & Vlassopoulos, 2013)
- Kevin Lewis roundup with many pay/promotion articles.