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Additionally Kohn takes issue with the widespread use of such plans and the tendency for management to look to the implementation methodology of an incentive plan when it fails, as opposed to the underlying validity of incentive plans in general.
In order to support his argument Kohn cites a number of studies that use a variety of laboratory methods to validate a relationship between reward and productivity. Kohn draws many of his conclusions from the absence of such a relationship and goes on to argue that this absence of evidence in fact constitutes a negative correlation.
Kohn examines some of the literature around the link between executive remuneration and corporate profitability and openly questions the author’s conclusions, based upon re-interpreting the evidence to support his hypothesis...
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