17. local and firm-wide bonus determinants A common practice is to define an overall bonus pool in...
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17. local and firm-wide bonus determinants A common practice is to define an overall bonus pool in terms of how well the firm has performed. For example, the pool might be a percentage of accounting income. A division manager’s share in this pool, in turn, is heavily influenced by how well that manager has performed, for example, in terms of profitability of the division managed. Implicitly, then, the manager is evaluated in terms of local and global measures. Discuss this practice.
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