Incentives and Rewards: Lazy or Excellent Management?

Occupational Health & Safety: The following excerpt is from a 1993 HBR article entitled "Rethinking Rewards": "In fact, we believe our incentive compensation program is at the heart of our company's success. . . . Since we adopted this approach, the quality of the budgeting process has substantially improved. Finally, award opportunities are uncapped, and, as a result, they encourage the entrepreneurial spirit that we value. When designed effectively and integrated thoroughly into the management process, executive incentive programs work well for management and shareholders alike." That article was written by L. Dennis Kozlowski, former chairman and CEO of Tyco. He was convicted on June 17, 2005, for financial crimes.