Consider a salesperson who has reached his bonus cap three months before fiscal year-end. Any achievement after that is not only unrewarded, but is actually penalized in the sense of creating higher future performance expectations and targets.… Continue Reading
When Wells Fargo imposed a target of eight accounts per customer on its branches, the bank created an aspirational goal. Cross-selling is a proven method of encouraging growth and maximizing upside, with little incremental expense.… Continue Reading
Incentive compensation is making lots of news lately, but the news is all bad. Mylan’s Epipen, Volkswagen, and Wells Fargo. Ugh.
Take Wells Fargo for example. It had a reasonable goal of increasing accounts through aggressive cross selling of products to existing consumers.… Continue Reading
Last week I attended a one-day event at the NYU Stern School of Business, hosted by Ethical Systems and the Behavioral Science and Policy Association.
During one session, “Walking the Tightrope: Balancing Incentives to Perform vs.… Continue Reading
In a prior post for the FCPA Blog, I talked about a Harvard Business Review article in which the authors shared their findings that “performance pay can actually have dangerous outcomes for companies that implement it.”… Continue Reading