Malcolm S. Salter. Tailor incentive compensation to strategy. Harvard Business Review, 51(2):94–102, 1973/03//Mar/Apr73.
@article{salter_tailor_1973,
abstract = {One of the tools top management has to influence policy-level executives' pursuit of corporate goals is the incentive compensation structure. So the structure must be made consistent with strategy. In evaluating whether it is consistent, this article says, top management should think of it in terms of four aspects of corporate policy: short run versus long run, risk aversion versus risk taking, interdivisional relationships, and company-division relationships. The author considers these in the context of six elements of incentive plans: financial instruments, performance measures, degree of discretion in allocating rewards, size and frequency of awards, degree of uniformity and funding.},
author = {Salter, Malcolm S.},
issn = {00178012},
journal = {Harvard Business Review},
number = {2},
pages = {94-102},
title = {Tailor Incentive Compensation to Strategy},
volume = {51},
year = {1973/03//Mar/Apr73}
}