Making executive pay work: The psychology of incentives

Making executive pay work: The psychology of incentives

There is an emerging consensus, at least in Western economies, that there is something deeply flawed about the current model of executive pay. But despite the increasing focus on the pay of executives, surprisingly little attention has been paid to perhaps the most important constituency: executives themselves.

If executive pay were genuinely motivating executives towards higher levels of performance, with benefits for all, there would surely be less controversy about the subject. But is it? Does the current model really work for the individuals it is meant to be motivating? Our global Psychology of incentives survey ask executives what they think.