Could fat paycheques be making your company’s top executives lazy? A study by Phillipe Jacquart and J Scott Armstrong says the idea that higher pay guarantees the selection of brighter executives may not always work because of poor recruiting methods. The authors found that in many cases, higher pay affects the intrinsic motivation of the executives, makes them ignore stakeholders and inhibits learning. They also found no foolproof way to relate incentives with action and found that incentives often make top executives behave in an unethical manner.

 

Title: Are Top Executives Paid Enough? An Evidence-Based Review
Source: Social Science Research Center