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Why bonus-based pay packages are a mess

Geoff Riley

19th October 2017

The bonus-culture for executives is attacked in this short comment video from the FT. A good video to watch especially for the applied side of labour market economics.

The FT's Andrew Hill explains why bonus-based pay is fundamentally flawed and why firms need to look for an alternative approach to executive pay.

"Research shows that bonuses can get in the way of our intrinsic motivation to do the right thing."

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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