Freek Slams Executive Incentives
Freek Vermeulen (what a great name!) and Dan Cable, both professors at London Business School, have written an article for Harvard Business Review warning of the dangers inherent in executive incentive pay. The authors cite a number of good arguments against performance-based bonuses (most of which you may be familiar with if you’ve read Daniel Pink or seen his TED talk). The most alarming of the possible downsides may be that you are providing an incentive to cook the books!