Pay-for-performance compensation is designed to motivate employees, but it often ends up rewarding managers who set the bar low. Here's an alternative approach for setting incentive plan targets.
Incentive Compensation Under Rolling Forecasts [1] | Source: The Big Fat Finance Blog [2].
Links:
[1] http://bigfatfinanceblog.com/2009/08/24/incentive-compensation-under-rolling-forecasts/
[2] http://bigfatfinanceblog.com/