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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/18895
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| Title: | | EVA and the controllability-congruence trade-off : an empirical investigation  |
| Authors: | | Ponssard, Jean-Pierre Larmande, François |
| Issue Date: | | 2004 |
| Series/Report no.: | | CESifo working papers 1257 |
| Abstract: | | Incentives theory suggests that compensation schemes should be analyzed along two dimensions: controllability and congruence. Most schemes cannot satisfy both criteria at once. EVA bonus schemes, a major managerial innovation of the 90?s, favor the congruence criterion. This paper questions ist properties along the controllability dimension. The question is addressed through an in-depth case study: after three years in operation the actual bonuses paid by the system, as well as qualitative feedback from the managers involved, are analyzed. It is argued that EVA bonus schemes may have a major controllability problem. |
| Subjects: | | EVA management compensation controllability-congruence trade-off compensation standards |
| JEL: | | M52 J33 D8 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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