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Pay for Performance? It Depends on the Measuring Stick
The New York Times; subscription may be required Link to more items from this source
Apr. 13, 2014
"[P]ay for performance is only as good as the metrics used to determine it. And as a recent study shows, some metrics -- including the most popular -- are downright ineffective at motivating executives to create shareholder value.... Some boards award incentive pay based on a company's total shareholder return or earnings-per-share growth; others use return on invested capital or return on equity. Most companies use more than one measure. And all argue that their methods justify the incentive pay they award."

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