Purpose – Performance pay is growing in importance. Even in a centralised economy such as the Norwegian economy, the prevalence of performance pay has increased significantly from 1997 to 2003, and internationally changes in payment methods also occur increasingly. The purpose of this paper is...

Purpose – The purpose of this paper is to improve our understanding of why some firms tie compensation to worker performance as well as the variation in type of performance pay system across firms. Design/methodology/approach – The study first presents a theoretical framework that motivates...

Purpose – The purpose of this paper is to improve our understanding of why some firms tie compensation to worker performance as well as the variation in type of performance pay system across firms. Design/methodology/approach – The study first presents a theoretical framework that motivates...