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The Structure of Organizational Incentives

Richard A. Lambert, David F. Larcker and Keith Weigelt
Administrative Science Quarterly
Vol. 38, No. 3 (Sep., 1993), pp. 438-461
DOI: 10.2307/2393375
Stable URL: http://www.jstor.org/stable/2393375
Page Count: 24
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
The Structure of Organizational Incentives
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Abstract

To improve understanding and design of organizational incentives, we used confidential compensation data obtained for four distinct organizational levels (ranging from plant manager to corporate chief executive officer) to evaluate the ability of tournament, managerial power, and agency theories to explain these observed compensation data. Our results suggest that organizational incentives are most appropriately characterized by a combination of these models, rather than being completely described by a single theoretical description.

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