Monday, 1 July 2013

Against performance pay

Great Reuters blog here arguing that exec pay should be far more about salary and far less about variable reward. Again, I do think opinion is starting to shift on this one. Love this para summing up what's wrong with current approach-

In sum, the usual arguments for complicated remuneration packages are all specious. These arrangements do not motivate. They do not encourage long-term thinking. They do not align executives’ interests with anything helpful. They do not make pay rewards more just. Rather, they are misleading to outsiders and distracting to insiders.

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