Subject category:
Human Resource Management / Organisational Behaviour
Published by:
Harvard Business Publishing
Version: 3 January 2012
Revision date: 07-Feb-2012
Length: 25 pages
Data source: Field research
Abstract
Teena Lerner started her own hedge fund firm in 2001 after nearly 20 years as a star biotechnology analyst and hedge fund manager. After the start-up phase, her firm became highly profitable. In 2004, however, one of her four analysts lost a lot of money for the firm. If Lerner followed the existing compensation system, she would wind up significantly underpaying her other analysts, all of whom had performed well. Should she follow the compensation system or not? And what should be done about the underperforming analyst?
Locations:
Industries:
Size:
10 employees, USD6 million revenues
Other setting(s):
2004
About
Abstract
Teena Lerner started her own hedge fund firm in 2001 after nearly 20 years as a star biotechnology analyst and hedge fund manager. After the start-up phase, her firm became highly profitable. In 2004, however, one of her four analysts lost a lot of money for the firm. If Lerner followed the existing compensation system, she would wind up significantly underpaying her other analysts, all of whom had performed well. Should she follow the compensation system or not? And what should be done about the underperforming analyst?
Settings
Locations:
Industries:
Size:
10 employees, USD6 million revenues
Other setting(s):
2004