Under current compensation schemes, senior managers are rewarded even when their companies underperform. But there's a way for boards to align executive pay with shareholder expectations. Alfred Rappaport will demonstrate the ways in which boards of directors can push through changes in executive compensation practices and adopt reforms at all levels of the organization. This article, which originally appeared in the March-April 1999 Harvard Business Review, is offered in audio form exclusively through Audible.
©1999 by the President and Fellows of Harvard College, All Rights Reserved; (P)1999 Audible Inc.