Case | HBS Case Collection | June 1993 (Revised November 2007)

Duckworth Industries, Inc.--Incentive Compensation Programs

by William E. Fruhan Jr.

Abstract

A private company is considering an introduction of a long-run incentive compensation system in which payoffs to managers are determined by the economic value added for shareholders by their individual business units. The proposed new system is compared to a number of earlier incentive schemes utilized by the firm.

Keywords: Executive Compensation; Management Teams; Business and Shareholder Relations; Motivation and Incentives; Value Creation;

Citation:

Fruhan, William E., Jr. "Duckworth Industries, Inc.--Incentive Compensation Programs." Harvard Business School Case 293-091, June 1993. (Revised November 2007.)