Product details

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Subject category: Entrepreneurship
Published by: Stanford Business School
Originally published in: 2019
Version: 10 April 2019

Abstract

Bonuses are an important part of any CEO's toolkit. This white paper outlines specific steps to follow in establishing or revamping a company's bonus structure, and how this part of the compensation system can reward outstanding results and help retain star performers. Computing bonuses with specific targets, and tallying the results on a quarterly rather than annual basis, for instance, will boost accountability and help keep managers and employees focused on reaching the specified goals.

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
World/global

About

Abstract

Bonuses are an important part of any CEO's toolkit. This white paper outlines specific steps to follow in establishing or revamping a company's bonus structure, and how this part of the compensation system can reward outstanding results and help retain star performers. Computing bonuses with specific targets, and tallying the results on a quarterly rather than annual basis, for instance, will boost accountability and help keep managers and employees focused on reaching the specified goals.

Settings

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
World/global

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