Incentive Compensation No One Likes Term Paper

Also, environmental factors as well as leadership can affect overall company performance. Oxford's floundering was due partially to internal control issues that may or may not have been under the direct control of Wiggins, and also had roots in the problems afflicting the health care industry in general. This is why: "Financial rewards in a fast-changing business environment could undermine a company's ability to build trust and commitment unless management and employees have an honest discussion about their mutual expectations" ("Performance-Based Salaries Don't Always Pay Off,"2003, Harvard Business School Working Knowledge).Finally, it must be remembered that the effects upon the psyche of even a well-compensated CEO who does not receive his or her expected compensation may frustrating but this effect can be even more devastating for a less well paid, lower-level employee.

Works Cited

Performance-Based Salaries Don't Always Pay Off." (26 Apr 2003).

Harvard Business School Working Knowledge. Retrieved 18 Aug 2007 at http://news.com.com/Performance-based+salaries+don't+always+pay+off/2009-1069_3-997668.html.....