I recently published an article on the negative and positive side of bonus payments. This has been a big topic since the beginning of the financial crisis. Much of the discussion on this subject has been focused on the finance and banking industries. However, bonuses are also increasingly used within higher education. Indeed, Collini (2012) has even ironised that “vice-chancellors now keep as nervous an eye on league tables as do football managers.” Part of the reason for this is that many have their bonus payments linked the ranking of the university.
Here is a short extract from the article.
Key words: bonuses, executive compensation, higher education, Goodhart’s law, leadership, performance