How to design CEO pay to punish iniquity, not just reward virtue thumbnail

How to design CEO pay to punish iniquity, not just reward virtue

IF BUSINESS HAD a Moses, “Thou shalt link pay to performance” would be on his tablet. Compensation committees have, however, tended to stick to a narrow reading of the commandment. Whereas they reward good behaviour, deterring the bad is an afterthought. Worried that this may lead bosses to adopt a mentality of “heads we win,…