Publications

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December 2001 (Revised June 2002)
Case

Compensation at Level 3 Communications

Level 3's unique compensation plan rewarded managers for the firm's performance only if the firm's stock price movement exceeded that of the market. This design was intended to maximize shareholder value by tying manager's performance more closely to that of the firm,... View Details

Keywords: Motivation and Incentives; Compensation and Benefits; Telecommunications Industry

April 2020
Teaching Note

Executive Compensation at Talent Partners

By: Richard S. Ruback, Royce G. Yudkoff and Ahron Rosenfeld

Teaching Note for HBS Case No. 211-073. Talent Partners, a payroll service firm focused on actors in commercials, hired Paul Muratore to be its CEO in 2002. His compensation package included a fixed salary and a bundle of Stock Appreciation Rights (SAR) that would... View Details

Keywords: Executive Compensation; Stock Options; Compensation and Benefits

June 1993 (Revised November 2007)
Case

Duckworth Industries, Inc.--Incentive Compensation Programs

By: William E. Fruhan Jr.

A private company is considering an introduction of a long-run incentive compensation system in which payoffs to managers are determined by the economic value added for shareholders by their individual business units. The proposed new system is compared to a number of... View Details

Keywords: Executive Compensation; Management Teams; Business and Shareholder Relations; Motivation and Incentives; Value Creation

01 May 2018
News

Elon Musk’s Unusual Compensation Plan Isn’t Really About Compensation at All

April 2005 (Revised May 2005)
Case

Executive Compensation at General Electric (A)

By: V.G. Narayanan and Michele Jurgens

Faced with falling share prices and the critical eye of the media focused on Jack Welch's retirement plan, newly appointed CEO Jeff Immelt had the challenge of reassessing GE as a leader of corporate integrity and good governance. Presents the changes Immelt initiated... View Details

Keywords: Executive Compensation; Employee Stock Ownership Plan; Governing and Advisory Boards; Media; Governance; Corporate Accountability

01 Jun 2006
News

CEO Compensation Troubles

Criticisms of CEO pay have two related themes: It is too high, and is not closely related to company performance. These problems persist for complex reasons even as directors worry about them. The most significant reason is that board View Details

Keywords: Jay W. Lorsch; Management of Companies and Enterprises; Management

30 Aug 2006
Op-Ed

The Compensation Game

executive pay. The idea that CEO compensation is driven by the invisible hand of market forces is a myth from which chief executives have long benefited. In setting executive pay, directors have not been guided solely by the interests of... View Details

Keywords: by Lucian Bebchuk & Rakesh Khurana

November 1993 (Revised December 1997)
Supplement

General Dynamics: Compensation and Strategy (B)

Updates General Dynamics: Compensation and Strategy (A). View Details

July 2010 (Revised December 2010)
Case

Post-Crisis Compensation at Credit Suisse (A)

By: Clayton S. Rose and Aldo Sesia

On October 20, 2009, Brady Dougan, the CEO of Credit Suisse Group, announced a new compensation plan for the bank. The announcement had followed quickly on the heels of the G-20 meeting the prior month where, in the wake of the financial crisis, the major governments... View Details

Keywords: Financial Crisis; Globalized Firms and Management; Governing Rules, Regulations, and Reforms; Taxation; Compensation and Benefits; Organizational Culture; Business and Shareholder Relations; Banking Industry; Financial Services Industry; Switzerland; United Kingdom

09 Feb 2016
Working Paper Summaries

Executive Compensation and Misconduct: Environmental Harm

Keywords: by Dylan Minor

January–February 2021
Article

Compensation Packages That Actually Drive Performance

By: Boris Groysberg, Sarah Abbott, Michael R. Marino and Metin Aksoy

By aligning executives’ financial incentives with company strategy, a firm can inspire its management to deliver superior results. But it can be hard to get pay packages right. In this article four experts break down the key elements of compensation and explain how to... View Details

Keywords: Executive Compensation; Compensation and Benefits; Motivation and Incentives; Strategy; Performance

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September 1992
Background Note

Executive Compensation Debate

By: Joseph L. Bower

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Article

Gender Disparities in Compensation of Practicing Cardiothoracic Surgeons: Analyzing the Society of Thoracic Surgeons Compensation Survey

By: Cherie P. Erkmen, Anastasiia K. Tompkins, Shanda Blackmon, Larry R. Kaiser, Susanna Gallani, Jennifer C. Romano, Thomas MacGillivray and Michael J. Mack

BACKGROUND: Gender-based pay disparity in compensation is widespread. In cardiothoracic surgery, women earn between 71-84% of men’s salaries at comparable ranks. Limited data exist on how factors like subspecialty, practice type, and work efforts contribute to these... View Details

Keywords: Gender; Compensation and Benefits; Equality and Inequality; Experience and Expertise; Health Industry

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March 2020
Supplement

Stock-Based Compensation at Twitter

By: Jonas Heese

July 2007 (Revised September 2007)
Background Note

Compensating Family Employees in a Family Business

By: John A. Davis

Explores the core issues involved in compensating family employees in a family business. Explains family interests and other factors that shape family employee compensation practices. Distinguishes between achieving effective compensation practices, which help to... View Details

Keywords: Family Business; Employees; Compensation and Benefits

July 2010
Supplement

Post-Crisis Compensation at Credit Suisse (C)

By: Clayton S. Rose and Aldo Sesia

The (C) case describes the results of Credit Suisse's PIP I program, the value of PAF, shareholders' vote on the new compensation plan supported by management, and the impact of the company's approach to the U.K. banker's tax. View Details

Keywords: Voting; Taxation; Compensation and Benefits; Business and Shareholder Relations; Banking Industry; Financial Services Industry; Switzerland; United Kingdom

Fast Answer

Compensation data: private equity

Where can I find compensation data for post-MBA roles on the buy-side? The print reports listed below are available in the Stamps Reading Room for in-library use by authorized View Details

January 2003 (Revised May 2003)
Case

Yahoo!'s Stock-Based Compensation (B)

By: Paul M. Healy and Jacob Cohen

Supplements the (A) case. View Details

Keywords: Web Services Industry; Technology Industry