Effectively measuring and rewarding executive performance is one of the greatest challenges facing boards and management teams. Despite increased use of performance-based long-term incentive plans and more detailed disclosures explaining the compensation-performance link, many companies still struggle to develop systems for measuring executive performance. This Perspective examines seven deadly sins to avoid when selecting measures and setting targets for executive performance. It also identifies seven virtues of sound performance measurement systems that produce the right results. (Perspective, 6 Aug 2008, 8 pages)
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