The Use of Performance Measures in Incentive Contracting

The characteristics of performance measures (those data on which explicit incentive contracts are based) are examined to understand how firms use incentive contracting, and to predict the use of incentives in practice. Two ways of thinking about the choice of performance measures are suggested. The...

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Veröffentlicht in:	The American economic review 2000-05, Vol.90 (2), p.415-420
1. Verfasser:	Baker, George
Format:	Artikel
Sprache:	eng
Schlagworte:	Agency Bank loans Bank officers Business management Contract incentives Contracts Design Economic incentives Economic models Economic theory Employee motivation Employees Expected values Financial risk Incentive plans Incentives Loans Performance metrics Profit planning Profitability Profits Risk Sales management Studies Unresolved Issues in Personnel Economics
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