How do financial incentives for CEOs affect business outcomes? Bonuses have minimal effect, stock options have none

Image credit: Pixabay / CC0 Public Domain. Article by Prof. Denise Rousseau. Phys.org – December 19, 2023. Original article published in Carnegie Mellon University’s Heinz College News. Campbells Systematic Reviews: DOI: 10.1002/cl2.1370.

Financial incentives for chief executive officers (CEOs) are thought to motivate them to lead their company toward achieving important business objectives. In the first systematic review of all research on CEO incentives, researchers assessed the predictive effects of CEO financial incentives on certain business outcomes. […]

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