Revisiting EpiPen: Steep incentive thresholds are corporate disasters waiting to happen
Richard Bistrong and Marc Hodak
February 13, 2017
The root causes of perverse incentives often hide (in plain sight) in the most common variable compensation structures, which include payout floors, thresholds, payout caps, and stretch goals.
The seeds of the Epipen scandal, for example, were planted when Mylan’s management became eligible for millions of dollars of a one-time bonus payout if they hit 90 percent of their cumulative earnings target.… Continue Reading
