How to pay top executives if you want them to be innovative

Source: eurekalert.org ( Science & Technology )

Feb 12, 2019 12:00 AM 1+ week ago

How to pay top executives if you want them to be innovative

When pay dispersion is perceived as linked to an executive's individual performance (as in variable pay), it's considered legitimate and may promote knowledge-sharing and cooperation among top executives. On the contrary, when pay dispersion is not perceived to depend on individual contribution (as in fixed pay), it ignites a demotivating process of social comparison, detrimental to knowledge sharing and cooperation, according to a study by Bocconi University's Mario Daniele Amore....Read more.

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