TITLE

EFFECTIVENESS OF COMBINING BONUS PLAN AND BALANCED SCORECARD

AUTHOR(S)
Chung-Jen Fu; Bao-Guang Chang; Chen, Shaw K.
PUB. DATE
June 2008
SOURCE
Proceedings for the Northeast Region Decision Sciences Institute;2008, p120
SOURCE TYPE
Conference Proceeding
DOC. TYPE
Article
ABSTRACT
This study uses an explicit function form to show how to construct an optimal compensation model by integrating the bonus plan and the balanced scorecard system. Model analysis shows the optimal bonus scheme for different tiers and departments with various characteristics. Meanwhile, it shows that the weight of stock granted in the compensation system would be lower when the performance evaluation system is well operated. It is particularly important to those non-listing companies or non-for-profit organizations, as the stock bonus become less necessary when managers' effort can be well reflected by the performance evaluation system. The result can be served as a reference model to design better management system.
ACCESSION #
32007917

 

Related Articles

  • Using Restricted Exec Bonus Arrangements. Rowles, Matthew L. // National Underwriter / Life & Health Financial Services;6/27/2005, Vol. 109 Issue 25, p27 

    Delves into the different component of a restricted executive bonus arrangement which allows an employer to stay in control and provide the company with income tax deduction. Agreement between employers and executives to add personal life insurance protection; Payment of annual premiums;...

  • CORPORATE OBJECTIVES AND THE EXECUTIVE COMPENSATION PACKAGE. Ellig, Bruce R. // Industrial Management;Sep73, Vol. 15 Issue 9, p5 

    Discusses corporate compensation packages for executive in light of the corporation's objectives. Compensations which should reflect the amount of risk for a commensurate reward; Steps to identifying corporate needs which include considering the industry, the company's relationship to its...

  • A NEW BALL GAME.  // On Wall Street;Mar2007, Vol. 17 Issue 3, p34 

    The article discusses how securities firms pay their investment advisors. Pay scales are shaped by pushing to fee-based business and the effect of the overtime class-action lawsuits. Merrill Lynch has instituted a bonus based on production growth in its new "Focus on Growth" program that makes...

  • Less perky, more practical.  // Advertising Age;11/18/1991, Vol. 62 Issue 49, special section pS-10 

    This article reports on a Hewitt Associates survey of executive compensation in U.S. corporations as of November 1991. Perquisites are taking a back seat as greater portions of executive compensation are being placed at risk in the form of incentive arrangements. Perquisites also have become...

  • PROBLEMS IN SELECTING EMPLOYEE BENEFITS. Willis, E.S. // Monthly Labor Review;Apr69, Vol. 92 Issue 4, p61 

    Discusses excerpts of a study identifying the problems in selecting employee benefits using an inverted pyramid illustration. Government benefits; Total compensation in the form of gross cash pay to the individual at the top section; Benefits available through the employer at the middle section.

  • Tesco starts absence pilot.  // Employee Benefits;June2004, p12 

    Reports on the staff incentive plan offered by Tesco Stores Ltd. to its employees in Great Britain. Use of the plan to cut sickness absence levels; Features of the plan.

  • Take that apology and spend it. Boyle, Matthew // Fortune;6/11/2001, Vol. 143 Issue 12, p250 

    Discusses apology bonuses being offered by companies who, because of downsizing, found that they could not hire college and MBA graduates. Cash bonuses which were given, including bonuses of up to three months' pay; Companies which are giving apology bonuses; Ideas of how to spend bonus money,...

  • AGENCY THEORY AND VARIABLE PAY COMPENSATION STRATEGIES. Stroh, Linda K.; Brett, Jeanne M.; Baumann, Joseph P.; Reilly, Anne H. // Academy of Management Journal;Jun96, Vol. 39 Issue 3, p751 

    This study used a sample of middle-level managers to investigate the effects of organization-level agency-theory-based variables on the proportion of variable compensation that managers receive. Level of task programmability was associated with an increased use of variable pay, and long-term...

  • Using Executive Comp for Estate Planning. Ross, Allen // Advisor Today;Apr2002, Vol. 97 Issue 4, p60 

    Describes a compensation program for the senior executive and the organization. Benefits of the program to the executive; Difference between long-term, deferred-compensation program and the compensation program for executives; Advantages of the compensation program to the corporation.

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics