TY - CHAP
T1 - Performance-Related Pay in Danish Cooperative Creameries
AU - Hviid, Morten
PY - 2006
Y1 - 2006
N2 - Following the formation of the first cooperative creamery in Denmark in 1882, the number of creameries adopting this particular organisational form grew rapidly over the next 20 years. These cooperatives had to delegate the running of the creamery to a professional manager leading to potential incentive problems. This paper documents the extensive use of performance related pay. Three findings stand out. Firstly, the creameries’ awareness of the incentive problems. Secondly, the incentive contracts used were often quite complex and sometimes non-linear. Thirdly, contract terms often varied over time, even within individual creameries.
AB - Following the formation of the first cooperative creamery in Denmark in 1882, the number of creameries adopting this particular organisational form grew rapidly over the next 20 years. These cooperatives had to delegate the running of the creamery to a professional manager leading to potential incentive problems. This paper documents the extensive use of performance related pay. Three findings stand out. Firstly, the creameries’ awareness of the incentive problems. Secondly, the incentive contracts used were often quite complex and sometimes non-linear. Thirdly, contract terms often varied over time, even within individual creameries.
U2 - 10.1016/s0885-3339(05)09005-8
DO - 10.1016/s0885-3339(05)09005-8
M3 - Chapter
SN - 978-0-76231-278-8
VL - 9
T3 - Advances in the Economic Analysis of Participatory & Labor-Managed Firms
SP - 149
EP - 176
BT - Participation in the Age of Globalization and Information
ER -