Article | Journal of Finance

Compensation and Incentives: Practice vs. Theory

by George P. Baker, Michael C. Jensen and Kevin J. Murphy

Keywords: Compensation and Benefits; Motivation and Incentives; Practice; Theory;


Baker, George P., Michael C. Jensen, and Kevin J. Murphy. "Compensation and Incentives: Practice vs. Theory." Journal of Finance 43, no. 3 (July 1988): 593–616. (Reprinted in Michael C. Jensen, Foundations of Organizational Strategy, Harvard University Press, 1998.)