Using 1997-1999 annual performance evaluation data of 214 postal stores in Korea, we find that introduction of a relative performance evaluation (RPE)-based incentive plan is positively associated with financial performance and that under the new incentive plan, the degree of common uncertainty...

In a setting in which corporate headquarters dictates total sales targets, we study how supervisors allocate sales targets to individual stores. Specifically, we analyze whether supervisors strategically use discretion in the target-setting process to address compensation contracting issues. We...

This paper empirically examines the interactive effect of competition intensity and competition type on the use of customer satisfaction measures in executives’ annual bonus contracts. Specifically, we predict a stronger association between competition intensity in an industry and the use of...