Compensation: Strategies for a Bonus Plan

By David Dodson
2019 | Case No. E679 | Length 7 pgs.
Bonuses are an important part of any CEO’s toolkit. This white paper outlines specific steps to follow in establishing or revamping a company’s bonus structure, and how this part of the compensation system can reward outstanding results and help retain star performers. Computing bonuses with specific targets, and tallying the results on a quarterly rather than annual basis, for instance, will boost accountability and help keep managers and employees focused on reaching the specified goals.

Learning Objective

Early CEOs and those learning to be CEOs one day will gain a better understanding of the strategies to structure a company’s bonus payments for maximum impact
This material is available for download by current Stanford GSB students, faculty, and staff, as well as Stanford GSB alumni. For inquires, contact the Case Writing Office. Download