I’ll work this out sooner or later, but I haven’t gotten around to it. (When I was a kid, my mom gave me a wooden coin labeled “toit” just so that I, in her words, “got a round toit.”) Anyway, this is now black and white for no good reason.
“Compensation plans should look more like royalty streams”
From “The Wrong Incentive” by Roger Martin, Baron’s, Dec 23, 2003: How, then, should incentive compensation be structured? It should be based exclusively on features of the real market — sales, costs, investments, margins, profits. These are items over which management and employees have some control and their actions can be directly linked to such items. Compensation plans should look …