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  • All HBS Web  (1,937)
    • People  (1)
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  • October 1993 (Revised December 1997)
  • Case

General Dynamics: Compensation and Strategy (A)

William Anders became CEO of defense giant General Dynamics in 1991 as the Cold War was ending and as the industry became saddled with excess capacity. Observing that the company was underserving shareholders and required a massive change in its culture, Anders brought... View Details
Keywords: Motivation and Incentives; Corporate Strategy; Executive Compensation; Manufacturing Industry; United States
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Murphy, Kevin J. "General Dynamics: Compensation and Strategy (A)." Harvard Business School Case 494-048, October 1993. (Revised December 1997.)
  • 30 Jan 2018
  • News

The Erosion of Worker Compensation

  • May 2019
  • Supplement

Kjell and Company: Motivating Salespeople with Incentive Compensation (D)

By: Doug J. Chung
Kjell & Company was a Swedish retail electronics chain. The company’s products consisted of home electronics and accessories. The company was noted for its excellent customer service and a fair “one-for-all” HR policy. Historically, the salespeople had been compensated... View Details
Keywords: Salesforce Management; Compensation and Benefits; Motivation and Incentives; Change Management; Behavior; Electronics Industry; Sweden
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Chung, Doug J. "Kjell and Company: Motivating Salespeople with Incentive Compensation (D)." Harvard Business School Supplement 519-096, May 2019.
  • 17 Dec 2009
  • News

Harvard Business School Faculty Critique Executive Compensation

  • June 2016
  • Article

Corporate Governance and Executive Compensation for Corporate Social Responsibility

By: Bryan Hong, Zhichuan (Frank) Li and Dylan B. Minor
We link the corporate governance literature in financial economics to the agency cost perspective of corporate social responsibility (CSR) to derive theoretical predictions about the relationship between corporate governance and the existence of executive compensation... View Details
Keywords: Corporate Social Responsibility; Incentives For CSR; Non-financial Performance Measures; Agency Costs; Board Independence; Institutional Holdings; Managerial Power; Motivation and Incentives; Corporate Social Responsibility and Impact; Executive Compensation; Corporate Governance
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Hong, Bryan, Zhichuan (Frank) Li, and Dylan B. Minor. "Corporate Governance and Executive Compensation for Corporate Social Responsibility." Journal of Business Ethics 136, no. 1 (June 2016): 199–213.
  • September 2011
  • Article

What Drives Sell-Side Analyst Compensation at High-Status Investment Banks?

By: Boris Groysberg, Paul M. Healy and David A. Maber
We use proprietary data from a major investment bank to investigate factors associated with analysts' annual compensation. We find compensation to be positively related to "All-Star" recognition, investment-banking contributions, the size of analysts' portfolios, and... View Details
Keywords: Investment Banking; Research; Compensation and Benefits; Investment Portfolio; Forecasting and Prediction; Resource Allocation; Status and Position; Business Earnings; Quality; Revenue; Stocks; Voting
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Groysberg, Boris, Paul M. Healy, and David A. Maber. "What Drives Sell-Side Analyst Compensation at High-Status Investment Banks?" Journal of Accounting Research 49, no. 4 (September 2011): 969–1000.
  • 2000
  • Chapter

The Taxation of Executive Compensation

By: Brian Hall and Jeffrey B. Liebman
Keywords: Executive Compensation; Taxation
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Hall, Brian, and Jeffrey B. Liebman. "The Taxation of Executive Compensation." In Tax Policy and the Economy, Volume 14, edited by James Poterba, 1–44. Cambridge, MA: NBER and MIT Press Journals, 2000.
  • 2014
  • Working Paper

Pay Harmony: Peer Comparison and Executive Compensation

By: Claudine Gartenberg and Julie Wulf
This study suggests that peer comparison affects both wage setting and productivity within firms. We report three changes in division manager compensation following a 1991–1992 controversy over executive pay. We argue that this controversy increased wage comparisons... View Details
Keywords: Pay-for-Performance; Internal Labor Markets; Peer Comparison; Firm Geography; Behavior; Executive Compensation; Policy
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Gartenberg, Claudine, and Julie Wulf. "Pay Harmony: Peer Comparison and Executive Compensation." Harvard Business School Working Paper, No. 13-041, November 2012. (Revised May 2013, March 2014.)
  • 20 Nov 2012
  • Working Paper Summaries

Pay Harmony: Peer Comparison and Executive Compensation

Keywords: by Claudine Gartenberg & Julie Wulf
  • May 2011 (Revised March 2013)
  • Case

Marshall & Gordon: Designing an Effective Compensation System (A)

By: Heidi K. Gardner and Kerry Herman
CEO Kelly Browne wrestles with the design of a new compensation system to promote the collaboration and cross-selling necessary for supporting her firm's new strategy. Marshall Gordon International, a global public relations (PR) firm, has recently expanded its service... View Details
Keywords: Change Management; Customer Relationship Management; Compensation and Benefits; Retention; Growth and Development Strategy; Growth Management; Organizational Culture; Partners and Partnerships; Motivation and Incentives; Alignment; Public Relations Industry
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Gardner, Heidi K., and Kerry Herman. "Marshall & Gordon: Designing an Effective Compensation System (A)." Harvard Business School Case 411-038, May 2011. (Revised March 2013.)
  • October 2024
  • Article

Founder-CEO Compensation and Selection into Venture Capital-Backed Entrepreneurship

By: Michael Ewens, Ramana Nanda and Christopher Stanton
We show theoretically that a critical determinant of the attractiveness of VC-backed entrepreneurship for high-earning potential founders is the expected time to develop a startup’s initial product. This is because founder-CEOs’ cash compensation increases... View Details
Keywords: Entrepreneurship; Venture Capital; Executive Compensation
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Ewens, Michael, Ramana Nanda, and Christopher Stanton. "Founder-CEO Compensation and Selection into Venture Capital-Backed Entrepreneurship." Journal of Finance 79, no. 5 (October 2024): 3361–3405.
  • November 2013
  • Case

Larry Steffen: Valuing Stock Options in a Compensation Package

By: William E. Fruhan and Craig Stephenson
New MBA graduate Larry Steffen has accepted an attractive job offer from Athena Global Technology but must now choose one of two alternative compensation plans. The first compensation plan option includes a base salary plus a $25,000 cash bonus, and the second includes... View Details
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Fruhan, William E., and Craig Stephenson. "Larry Steffen: Valuing Stock Options in a Compensation Package." Harvard Business School Brief Case 914-517, November 2013.
  • 2012
  • Other Unpublished Work

The Efficacy of Shareholder Voting: Evidence from Equity Compensation Plans

By: Ian D. Gow, Christopher S. Armstrong and David F. Larcker
This study examines the effects of shareholder support for equity compensation plans on subsequent chief executive officer (CEO) compensation. Using cross-sectional regression, instrumental variable, and regression discontinuity research designs, we find little... View Details
Keywords: Voting; Equity; Executive Compensation; Rights; Performance Effectiveness; Business and Shareholder Relations; Mathematical Methods; Motivation and Incentives
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Gow, Ian D., Christopher S. Armstrong, and David F. Larcker. "The Efficacy of Shareholder Voting: Evidence from Equity Compensation Plans." 2012.
  • Research Summary

Board Independence and the Design of Executive Compensation

In this project, I analyze the compensation decisions of boards of directors. Compensation decisions not only serve to motivate executives, but also affect a board's reputation for independence. Although greater managerial influence over the board has the obvious... View Details
  • January 2010 (Revised April 2013)
  • Case

Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy (A)

By: Paul Healy, Clayton S. Rose and Aldo Sesia
Aubrey McClendon, founder and CEO of Chesapeake Energy, was, according to Fortune Magazine, the highest paid U.S. CEO in 2008 receiving over $100 million in total compensation. McClendon received this compensation despite a significant drop in the company's stock price... View Details
Keywords: Financial Statements; Financial Reporting; Price; Stock Options; Valuation; Joint Ventures; Business Growth and Maturation; Economic Growth; Growth and Development Strategy; Change Management; Energy Industry; United States
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Healy, Paul, Clayton S. Rose, and Aldo Sesia. "Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy (A)." Harvard Business School Case 110-047, January 2010. (Revised April 2013.)
  • November 1982
  • Case

Connecticut General Corp.: CEO Compensation

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Vancil, Richard F. "Connecticut General Corp.: CEO Compensation." Harvard Business School Case 183-116, November 1982.
  • December 2021
  • Article

Employee Responses to Compensation Changes: Evidence from a Sales Firm

By: Jason Sandvik, Richard Saouma, Nathan Seegert and Christopher Stanton
What are the long-term consequences of compensation changes? Using data from an inbound sales call center, we study employee responses to a compensation change that ultimately reduced take-home pay by 7% for the average affected worker. The change caused a significant... View Details
Keywords: Employees; Wages; Compensation and Benefits; Change; Performance; Resignation and Termination; Retention; Analysis
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Sandvik, Jason, Richard Saouma, Nathan Seegert, and Christopher Stanton. "Employee Responses to Compensation Changes: Evidence from a Sales Firm." Management Science 67, no. 12 (December 2021): 7687–7707.
  • May 2019
  • Supplement

Kjell and Company: Motivating Salespeople with Incentive Compensation (C)

By: Doug J. Chung
Kjell & Company was a Swedish retail electronics chain. The company’s products consisted of home electronics and accessories. The company was noted for its excellent customer service and a fair “one-for-all” HR policy. Historically, the salespeople had been compensated... View Details
Keywords: Salesforce Management; Compensation and Benefits; Change Management; Behavior; Electronics Industry; Sweden
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Chung, Doug J. "Kjell and Company: Motivating Salespeople with Incentive Compensation (C)." Harvard Business School Supplement 519-095, May 2019.
  • January 2017 (Revised May 2019)
  • Case

Kjell and Company: Motivating Salespeople with Incentive Compensation (A)

By: Doug J. Chung
Kjell & Company was a Swedish retail electronics chain. The company’s products consisted of home electronics and accessories. The company was noted for its excellent customer service and a fair “one-for-all” HR policy. Historically, the salespeople had been compensated... View Details
Keywords: Salesforce Management; Compensation and Benefits; Change; Decision Making; Electronics Industry; Sweden
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Chung, Doug J. "Kjell and Company: Motivating Salespeople with Incentive Compensation (A)." Harvard Business School Case 517-090, January 2017. (Revised May 2019.)
  • April 2005 (Revised May 2005)
  • Supplement

Executive Compensation at General Electric (B)

By: V.G. Narayanan and Michele Jurgens
Supplements the (A) case. View Details
Keywords: Executive Compensation; Electronics Industry
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Narayanan, V.G., and Michele Jurgens. "Executive Compensation at General Electric (B)." Harvard Business School Supplement 105-070, April 2005. (Revised May 2005.)
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