Executive Bonuses Might Work Better Than You Think - Deepstash

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Executive Bonuses Might Work Better Than You Think

gsb.stanford.edu

JOHN KEPLER

When it comes to executive compenation, including bonus plans, there is no one-size-fits-all solution.

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Cash Bonuses Work

There's research done on how cash bonuses work. Bonus plans have a significat impact on the executive's incentives to boost corporate performance. 

The research found that bonus plans ultimately facilitates better cooperation across top management teams because it holds sen...

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Bonuses and Cost-Shielding

Bonus plans are pretty ubiquitous and many executive bonus structures don't use a bottom-line net income to gauge performance but instead they use figures higher up on the income statement like EBITDA (earnings before interest, taxes, depreciation, and amorization). 

Trying bonus-r...

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