Discussion of earnings-based bonus plans and earnings management by business unit managers

Article Abstract:

The study made by Guidry, Leone and Rock was based on business unit data gathered from the database of a multinational corporation. Stock-based compensation was used as a reference point for evaluating earnings management incentives. However, little evidence supports the existence of a possible correlation between earnings management and the awarding of management bonuses. The proposed accrual computation model based on the inventory reserve account may be rendered obsolete by inventory reserves affected by drastic changes in economic conditions.

Wage Administration, Bonus & Merit Payments, Models, Compensation management

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Merging? Don't let employees be the last to know

Article Abstract:

Two companies have developed effective ways of handling mergers. Software firm Symantec Corp. ensures the success of mergers by making employees a part of the process. On the other hand, law firms Lathrop & Norquist and Gage & Tucker adopted a task force concept in planning their merger with employees from the two firms engaging in pre-merger committee meetings. Weekly lunches were also held to allow employees to communicate with managing partners.

Business Personnel Management, Methods, Acquisitions and mergers, Human resource management

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Performance standards in incentive contracts

Article Abstract:

Research is presented describing the study of standards of performance by employees when negotiating bonus contracts through the use of enhanced incentive management.

Research, Study and teaching, Management research, Performance standards, Job performance standards

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