Einführung in die Dermatopathologie

Management Fashion Pay-for-Performance for CEOs

“…The Safelite Glass Company is a prominent example. After the change from fixed pay rates per hour to piece rates, which were measured according to assembled glass units per worker and day, productivity rose by an astonishing 36%, the incentive effect by 20% and the self-selection effect by 16%, while salary cost only rose by 9% (Lazear (1999); ; Wolff and Lazear (2001); Besanko et al (2004)). The company transferred this piece-rate concept to managers without…”