Incentive compensation system
Fast forward 10 years. Assume that CSI has been successful. It is now a much larger, public company. It has three operating divisions (investment centers) that focus on different markets. What would you expect the CSI measurement and compensation systems to look like at that time? Why?
reading list:
MCS Chapter 12
– Gibbs M, Merchant K, Van der Stede W & Vargus M (2004), Determinants and Effects of Subjectivity in Incentives, The Accounting Review, 79(2), 409?436.
– Gibbs M, Merchant K, Van der Stede W & Vargus M (2009), Performance Measure Properties and Incentive System Design, Industrial Relations, 48, 237?264.
– Van der Stede W (2009), Designing Effective Reward Systems, Finance & Manage? ment, 170, Oct, 6?9.
