Assessing Risk in Incentive Compensation Plans

Assessing Risk in Incentive Compensation Plans

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Original Source: Deloitte Consulting

Incentive compensation can be a powerful tool to properly align employees with the achievement of the company’s objectives. Over the years, however, and in the aftermath of the financial crisis of 2008–2009, there have been numerous examples of incentive compensation programs motivating behaviors and activities that resulted in unintended consequences that damaged company reputations, financially harmed companies and their shareholders, and culminated in employee and executive terminations…

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