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Alan's avatar

Loved your comments here on incentive systems. I struggle with this at my companies. If you don’t pay bonuses, people think your compensation isn’t “market.” Even if you simply raised their wages to the amount of salary plus bonus. They just assume the raise and then ask, “Where are the bonuses? All the other companies pay bonuses.” If you pay bonuses and someone doesn’t get one then they feel punished and if you simply pay everyone the same bonus, some get mad that others got the same but didn’t work as hard as they did, etc. It’s a total nightmare and I hate the whole system. It seems like the logical approach is to just keep changing the system so that we seem to be addressing concerns and no one can game it consistently.

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Stephen Schwarz's avatar

When you say the people that run Harvard (or Yale, or Princeton} are spineless that implies that they know what the right thing to do is, but lack the courage to do it. I think the evidence is clear that they firmly believe they are doing the right thing.

Which is worse than spineless.

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