Should a CEO’s Bonus Be Based on Financial Performance Alone?
Harvard Business
MAY 25, 2017
.” In 2012 the Commonwealth Bank restructured its evaluation system so that 75% of CEO incentives came from the bank’s total shareholder return (TSR), relative to a set peer group, and 25% from customer-satisfaction results, benchmarked against another peer group. ” Now a full 50% of the assessment was subjective.
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