USSTOCK.TODAY
Market Closed
Log in Sign up

Mismatch Between Investment Performance and Individual Incentive Contracts

Abnormal Returns ·

  1. 1Investment performance is particularly unsuitable for individual incentive contracts.
  2. 2It exhibits characteristics of being weak and lagging.
  3. 3It is heavily contaminated by factors outside the control of employees.

So what's the key point?

Using investment performance to determine bonuses is not appropriate. This is because results can be distorted by factors that employees cannot control.

Source Abnormal Returns · View original ↗

Related 3-line summaries

The Risks of Protest Voting and Historical Precedents Daily Reckoning · 6h agoIncreased Silver Price Volatility and Differing Investment Strategies Daily Reckoning · 6h agoThe Long-Term Cost of Sports Betting: Lost Compound Interest Opportunities CNBC · 4h ago
Today's 5 AI picks, all free
Nothing hidden: past picks and how they did against the S&P 500.
See today's picks →
← Back to news