Gibbs, Michael; Merchant, Kenneth A.; Stede, Wim A. Van der - Institute for the Study of Labor (IZA) - 2004
We examine the effects of performance measure properties on incentive system design, using data on incentive contracts … design. First, firms appear to choose the “best” performance measure available along these dimensions, and use it for the … most important (primary) formula bonus. Second, the properties of this primary performance measure are important …