Financial Incentives - Publications - Faculty & Research

October 2001 (Revised February 2002)
Case

Acme Investment Trust: January 2001

The managers of a large corporate pension fund must decide whether to invest in a private equity fund that is offering a guaranteed rate of return of 20% on part of its portfolio. The background behind and implications of the guarantee are explored. View Details

Keywords: Decisions; Private Equity; Motivation and Incentives; Asset Management; Investment Funds; Financial Strategy; Financial Services Industry

Citation

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May 2002
Case

Venture Capital Fund Restructuring Vignettes (Abridged)

By: Paul A. Gompers

This case examines the changes in fund structures proposed by four venture capital firms in 2002: Accel Partners, Battery Ventures, Charles River Ventures, and Kleiner Perkins Caufield & Byers. The venture capital market has experienced a major downturn, and these... View Details

Keywords: Venture Capital; Restructuring; Financial Crisis; Motivation and Incentives; Business and Shareholder Relations; Investment Funds; Financial Services Industry

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14 Apr 2003
Research & Ideas

Pay-for-Performance Doesn’t Always Pay Off

something new to spur on their employees. According to Beer, managers in many companies look to pay-for-performance for good reasons. They expect that it will attract and motivate people. They expect performance standards will outweigh the costs of whatever View Details

Keywords: by Martha Lagace

01 Sep 2010
News

Letters to the Editor

graduating MBAs to engage in and influence the key strategic priorities of leading social sector organizations. Although the article cited the generous financial support that HBS and its donor base provides to fellows, it’s also worth... View Details

Keywords: Securities, Commodities, and Other Financial Investments; Securities, Commodities, and Other Financial Investments

28 Aug 2017
Research & Ideas

Should Industry Competitors Cooperate More to Solve World Problems?

Source: Cecilie_Arcurs George Serafeim has a startling suggestion to fix the world’s biggest environmental, social, and governance (ESG) problems such as water pollution, deforestation, and wealth inequality: encourage companies within industries to do less competing... View Details

Keywords: by Sean Silverthorne; Financial Services; Manufacturing; Agriculture & Agribusiness; Mining

26 Jun 2012
First Look

First Look: June 26

agents, for whom the relative value of the reward is higher. Second, contrary to existing laboratory evidence, financial incentives do not appear to crowd out intrinsic motivation in this setting. Third,... View Details

Keywords: Sean Silverthorne

03 Mar 2010
What Do You Think?

To What Degree Does “Identity” Affect Economic Performance?

but a relatively uninterested, insecure work force is unlikely to bring about a vigorous recovery." He concludes that "Solutions for the economy must address not only the structural instability of our financial institutions, but... View Details

Keywords: by Jim Heskett

18 Jun 2007
Op-Ed

Leveling the Executive Options Playing Field

managers at the expense of investors and tax authorities.” My comments below provide an overview of the financial and tax accounting systems and their treatment of incentive compensation. Independently, the... View Details

Keywords: by Mihir Desai

03 Mar 2003
What Do You Think?

Are Conditions Right for the Next Accounting Scandal?

organizations. Without incentives to do so, the natural tendency is to opt for the "safe" alternative, particularly in a litigious investing community. What form could these incentives take? Whose... View Details

Keywords: by James Heskett; Financial Services; Financial Services

31 Oct 2017
First Look

New Research and Ideas, October 31, 2017

forthcoming Journal of Political Economy The Market for Financial Adviser Misconduct By: Egan, Mark, Gregor Matvos, and Amit Seru Abstract—We construct a novel database containing the universe of financial... View Details

Keywords: by Sean Silverthorne

02 Nov 2009
Research & Ideas

Shareholders Need a Say on Pay

“Historically, when the government tries to set limits it doesn't work very well.” Say on pay has been a research focus of HBS assistant professor Fabrizio Ferri, who started his career at Stern Stewart & Co specializing in performance measurement and View Details

Keywords: by Julia Hanna; Financial Services

01 Dec 2022
News

Road to Recovery

options to assist people with substance use issues. Then he learned that there were better treatments available—a category of interventions known as contingency management, which offer motivational incentives for staying sober. “But no... View Details

Keywords: April White; Ambulatory Health Care Services; Health, Social Assistance

07 Oct 2002
Research & Ideas

What Leaders Need to Do To Restore Investor Confidence

is all this misconduct occurring now? A: I think it's the confluence of several factors: the use of powerful incentive packages, an exuberance that pushed equity prices to heights that were hard to justify economically and yet were very... View Details

Keywords: by Harvard Management Update

19 Feb 2014
Research & Ideas

Racist Umpires and Monetary Ministers

about baseball and race, he's explored questions such as how much money motivates ministers, and how much financial journalists affect the stock market. "I am interested in what motivates people," he says, "and what causes... View Details

Keywords: by Michael Blanding; Sports; Information; Publishing

14 Jun 2004
Research & Ideas

The Big Money for Big Projects

social returns when they succeed. The problem, says Esty, is that many of the largest products have hit financial turbulence. Esty, whose new book Modern Project Finance: A Casebook, was published recently, teaches the "Large-Scale... View Details

Keywords: by Ann Cullen; Financial Services

05 Jul 2006
Research & Ideas

Reinventing the Dowdy Savings Bond

months. Marketing for the program was also eliminated. While all banks sell bonds, the $.50 to $.85 they earn for each transaction gives them little financial incentive to make the process easy for... View Details

Keywords: by Julia Hanna; Financial Services; Financial Services

30 Jan 2012
Research & Ideas

Measuring the Efficacy of the World’s Managers

highest overall management scores in retail, health care, and manufacturing. But US schools scored comparatively lower, coming in fourth behind the United Kingdom, Sweden, and Canada. "US schools in particular tend to be particularly poor at View Details

Keywords: by Carmen Nobel

23 Jun 2003
Research & Ideas

Psychology, Pathology, and the CEO

financial and strategic decision making. But along the way, I also noted another important aspect of this leadership task, a related line of effort that seemed to go largely unnoticed and unstudied by observers but that was just as vital... View Details

Keywords: by Rosabeth Moss Kanter

01 Jun 1998
News

Short Takes

HBS professor Michael Beer and Harvard University doctoral candidate Nancy Katz report on a survey of 205 executives from 30 countries in industries such as manufacturing, retail, and financial and professional services. The survey... View Details

Keywords: Orna Feldman and Caroline Chauncey

01 Sep 2008
News

Faculty Research Online

governance and financial incentives as well as organizational processes that strengthen ethical discipline, says Professor Emeritus Malcolm Salter. His new book, Innovation Corrupted: The Origins and Legacy... View Details

Keywords: Colleges, Universities, and Professional Schools; Educational Services

Publications