Jump to ContentJump to Main Navigation
Productivity and the Bonus Culture$
Users without a subscription are not able to see the full content.

Andrew Smithers

Print publication date: 2019

Print ISBN-13: 9780198836117

Published to Oxford Scholarship Online: May 2019

DOI: 10.1093/oso/9780198836117.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 04 April 2020

Reversing Perverse Incentives

Reversing Perverse Incentives

Chapter:
(p.115) 21 Reversing Perverse Incentives
Source:
Productivity and the Bonus Culture
Author(s):

Andrew Smithers

Publisher:
Oxford University Press
DOI:10.1093/oso/9780198836117.003.0021

Depressed business investment prevents growth. There are two possible ways to change this. The first is to alter the way senior managers are remunerated. The second is leave the incentives unchanged but change their impact on investment. This chapter deals with the first. Bonus systems for companies could be changed by encouraging them to include productivity targets. Productivity is output divided by hours worked. Both these data are known to companies as output is broadly defined profits plus employment costs. Though known the information is seldom if ever published. The current failure to do so is both the result and the cause of misinformation, as analysts and financial journalists regularly confuse sales with output. The requirement to publish output and productivity data would on its own benefit the economy.

Keywords:   investment, growth, change, incentives, impact, tax, bonuses, productivity, output, sales

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .