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Type	Working Paper
Scope	Discipline-based scholarship
Title	Management Fashion Pay-for-Performance
Organization Unit	Foundations of Business Administration and Theories of the Firm (Andreas Scherer)
Authors	Margit Osterloh Katja Rost
Language	English
Series Name	http://ssrn.com/author=230507
Number	230507
Date	2009
Date Annual Report	2009
Abstract Text	We show theoretically and empirically that Pay-for-Performance, like many management fashions, has not achieved its intended aim. Our research focuses on previous empirical studies that examine the relation between variable executive pay and firm performance on various different dates. Our results indicate that a variable CEO income contributes very little to the increase of the firm’s performance, and that CEO salary and firm performance are not linked. The example of Pay-for-Performance shows that in the long run, many management fashions do not solve the problems that they promise to solve.
Official URL	http://ssrn.com/author=230507
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