| HBS Case Collection
(Revised January 2012)
Teena Lerner: Dividing the Pie at Rx Capital (Abridged)
Teena Lerner, the CEO of Rx Capital, had a problem. Her three-year-old hedge fund was highly profitable, but in 2004, one of her four equities analysts lost a lot of money for the firm. If Lerner followed her existing compensation system, designed to reward teamwork, he would wind up significantly underpaying her other analysts, all of whom had performed well. Should she follow the compensation system or not? And what should be done about the underperforming analyst?
Keywords: Compensation and Benefits;
Employee Relationship Management;
Groups and Teams;
Financial Services Industry;