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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

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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