RT Journal Article
SR Electronic
T1 Team-Based Incentive Compensation is Vital to Successful Operating Turnarounds
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 81
OP 88
DO 10.3905/JPE.2009.12.3.081
VO 12
IS 3
A1 David L Auchterlonie
YR 2009
UL https://pm-research.com/content/12/3/81.abstract
AB In recent months, greedy executives have given pay-based bonuses a bad rap. That’s unfortunate, because incentive compensation is a vital, essential, and frequently overlooked tool when it comes to turning around a poorly performing company. This is especially true when the focus is on employee incentive compensation. If substantial improvement is to be made to a struggling company’s EBITDA, a seismic change in the entire corporate culture must take place, starting at the grassroots level where employees work. A turnaround plan that incorporates team-based performance and results-based incentive bonuses for managers and employees can create amazing results in a financially challenged company.TOPICS: Private equity, manager selection, financial crises and financial market history, technical analysis