Dan Pink on the surprising science of motivation. Dan Ariely asks, What is the right amount to pay bankers? Dan Ariely’s new book, The Upside of Irrationality, debuts tomorrow — he sends us this teaser, based on research that’s described in much more detail in Chapter 1 of the new book: Recently there has been a public outcry against astronomical executive salaries.
The basic public sentiment is that it seems unfair that people make so much money for mismanaging our money, especially when it is so difficult to see how bankers’ talents and abilities justify their compensation. Naturally, it’s particularly offensive when executives receive high bonuses after disastrous performances, or, worse, when the bonuses come from taxpayers’ money courtesy of government bailouts. Not surprisingly, bankers have fought back, claiming that the high salaries are required to attract the best and brightest to crucial, high-stress, high-skill positions, and that the most talented and valuable bankers would go elsewhere if salaries were capped.
Executive Compensation. Executive Compensation Consulting, Director Compensation Consulting and Salary Surveys. Corporate Governance.