Short-Term Incentives Seen As Execs' Top Motivator - Brief Article
Robert W. ThompsonPerhaps your organization is considering long-term incentives to motivate its executives. That might not be a good idea. An e-mail poll by the American Compensation Association (ACA) of Scottsdale, Ariz., reveals that 59 percent of companies believe short-term incentives motivate their executives better than long-term inducements do.
Fewer than half (45 percent) of the companies responding to the survey said they believe equity ownership is the leading motivator of executives. Also, the ACA found a divergence between upper- and lower-level employees as to which component was more valuable. The respondents said their upper-tier employees valued equity more, while lower-level employees valued salary and short-term cash incentives.
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