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• Case | HBS Case Collection | March 2020

  Social Determinants of Health at Boston Medical Center

  Susanna Gallani, Kaya Bos and Kathryn Reddy

  Citation:

  Gallani, Susanna, Kaya Bos, and Kathryn Reddy. "Social Determinants of Health at Boston Medical Center." Harvard Business School Case 120-088, March 2020.  View Details

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• Working Paper | HBS Working Paper Series | 2020

  Nominal and Opportunity Effects of Managerial Discretion

  Wei Cai, Susanna Gallani and Jee Eun Shin

  We examine the performance consequences of managerial discretion when compensation payoffs are interdependent; that is, when rewards or penalties given to some employees cause others not to get them. Using proprietary data from a company that gives monthly rewards and penalties based on a combination of objective metrics and subjective performance assessments, we document both a nominal and an opportunity effect of managerial discretion. The former refers to performance consequences associated with workers who receive rewards or penalties due to managerial discretion (actual recipients). The latter refers to performance consequences associated with workers who would have received rewards or penalties had there been no managerial discretion (would-be recipients). Our study is, to our knowledge, the first to provide empirical evidence of performance consequences associated with the opportunity effect of managerial discretion. In additional tests, we explore theory-consistent explanations of our results. Our findings contribute to the literature on subjectivity in performance evaluations and have important practical implications for the design of incentive systems.

  Keywords: compensation interdependence; nominal and opportunity effects; Managerial Discretion; performance measurement; Employees; Compensation and Benefits; Management; Decisions; Performance; Measurement and Metrics;

  Citation:

  Cai, Wei, Susanna Gallani, and Jee Eun Shin. "Nominal and Opportunity Effects of Managerial Discretion." Harvard Business School Working Paper, No. 20-075, January 2020.  View Details

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• Other Unpublished Work | 2020

  Comment: Are ISS Recommendations Informative? Evidence from Assessments of Compensation Practices

  Susanna Gallani, Mary Ellen Carter and Ana Albuquerque

  Citation:

  Gallani, Susanna, Mary Ellen Carter, and Ana Albuquerque. "Comment: Are ISS Recommendations Informative? Evidence from Assessments of Compensation Practices." U.S. Securities and Exchange Commission, 2020. (Comments on Proposed Rule: Amendments to Exemptions from the Proxy Rules for Proxy Voting Advice.)  View Details

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