Opening Up the Blackbox: A UK Case Study of Top Managers’ Attitudes to their Performance-Related Pay
This paper examines the attitudes of the top managers within one large financial services organization in the UK to fixed and variable components of their compensation package. The rationale for performance-related pay for senior managers is to align their interests with those of the shareholders, b...
| Main Authors: | , |
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| Format: | Journal article |
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1996
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| _version_ | 1797086357643853824 |
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| author | Morris, T Fenton-O'Creevy, M |
| author_facet | Morris, T Fenton-O'Creevy, M |
| author_sort | Morris, T |
| collection | OXFORD |
| description | This paper examines the attitudes of the top managers within one large financial services organization in the UK to fixed and variable components of their compensation package. The rationale for performance-related pay for senior managers is to align their interests with those of the shareholders, but little is known about the views of top managers on the effectiveness of such incentives. The results suggest that the design of effective bonus systems is not just a technical issue: perceptions of market fairness with respect to the compensation package and the clear communication of goals are important in getting senior managers to focus on shareholder interests. |
| first_indexed | 2024-03-07T02:20:52Z |
| format | Journal article |
| id | oxford-uuid:a3dcb898-1a0d-47d7-bf7f-a7e9e169d17b |
| institution | University of Oxford |
| last_indexed | 2024-03-07T02:20:52Z |
| publishDate | 1996 |
| record_format | dspace |
| spelling | oxford-uuid:a3dcb898-1a0d-47d7-bf7f-a7e9e169d17b2022-03-27T02:30:02ZOpening Up the Blackbox: A UK Case Study of Top Managers’ Attitudes to their Performance-Related PayJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:a3dcb898-1a0d-47d7-bf7f-a7e9e169d17bSaïd Business School - Eureka1996Morris, TFenton-O'Creevy, MThis paper examines the attitudes of the top managers within one large financial services organization in the UK to fixed and variable components of their compensation package. The rationale for performance-related pay for senior managers is to align their interests with those of the shareholders, but little is known about the views of top managers on the effectiveness of such incentives. The results suggest that the design of effective bonus systems is not just a technical issue: perceptions of market fairness with respect to the compensation package and the clear communication of goals are important in getting senior managers to focus on shareholder interests. |
| spellingShingle | Morris, T Fenton-O'Creevy, M Opening Up the Blackbox: A UK Case Study of Top Managers’ Attitudes to their Performance-Related Pay |
| title | Opening Up the Blackbox: A UK Case Study of Top Managers’ Attitudes to their Performance-Related Pay |
| title_full | Opening Up the Blackbox: A UK Case Study of Top Managers’ Attitudes to their Performance-Related Pay |
| title_fullStr | Opening Up the Blackbox: A UK Case Study of Top Managers’ Attitudes to their Performance-Related Pay |
| title_full_unstemmed | Opening Up the Blackbox: A UK Case Study of Top Managers’ Attitudes to their Performance-Related Pay |
| title_short | Opening Up the Blackbox: A UK Case Study of Top Managers’ Attitudes to their Performance-Related Pay |
| title_sort | opening up the blackbox a uk case study of top managers attitudes to their performance related pay |
| work_keys_str_mv | AT morrist openinguptheblackboxaukcasestudyoftopmanagersattitudestotheirperformancerelatedpay AT fentonocreevym openinguptheblackboxaukcasestudyoftopmanagersattitudestotheirperformancerelatedpay |