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  • November 2001 (Revised April 2003)
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Camp Dresser & McKee: Getting Incentives Right

By: Ashish Nanda
  • Format:Print
  • | Pages:20
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Abstract

"If you try to use money to motivate behavior, you are in a powerful and dangerous place, especially with engineers and scientists," remarked Tom Furman, CEO of Camp Dresser & McKee, Inc. (CDM), a consulting environmental engineering firm. Historically, CDM had followed an "egalitarian" management bonus program based on qualitative measures. As industry growth decelerated and competition intensified since 1991, management changed the incentive plan to tie it closer to the achievement of business objectives. This case describes the bonus and incentive compensation system and the evaluation process. It ends with Furman reflecting on how to interpret the CDM system to reward four CDM executives suitably.

Keywords

Motivation and Incentives; Compensation and Benefits; Service Industry

Citation

Nanda, Ashish, and M. Julia Prats. "Camp Dresser & McKee: Getting Incentives Right." Harvard Business School Case 902-122, November 2001. (Revised April 2003.)
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About The Author

Ashish Nanda

Strategy
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  • Zaoui & Co. (A): Consigliere for High Stakes M&A Transactions By: Ashish Nanda, Alex Kitsberg and Zack Kurtovich
  • Emeritus: Achieving Impact, Providing Access (A) By: Ashish Nanda and Zack Kurtovich
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