Incentive Effects of Bonus Payments : Evidence from an International Company

  title={Incentive Effects of Bonus Payments : Evidence from an International Company},
  author={Axel Engellandt and Regina T. Riphahn},
Incentive Effects of Bonus Payments: Evidence from an International Company This study uses panel data describing about 6,500 employees in a large international company to study the incentive effects of performance related pay. The company uses two performance related remuneration mechanisms. One is an individual "surprise" bonus payment. The other is a more structured system, where part of the salary is determined by individual performance evaluations. We hypothesize that effort is higher in… CONTINUE READING

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