[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-357269-105":53,"doc-detail-357269-en":127},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":120,"head_meta":122,"extra_data":124,"updated_unix":126},105,"en","executive-compensation-white-paper-2019","Executive Compensation White Paper - 2019","","Executive Compensation White Paper examines how timing in executive pay influences a CEO’s long-term decision-making within public organizations. The report argues that excessive reliance on short-term incentives can undermine long-term wellbeing and performance metrics. It recommends interventions grounded in behavioral insights, particularly focusing on bonus timing and design, and highlights behavioral mechanisms such as myopic loss aversion and hyperbolic time discounting to support sustained organizational value creation.",{"@graph":63,"@context":119},[64,80,102],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":11,"@type":70,"position":76},"https://docshare.wps.com/template/presentations/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/executive-compensation-white-paper-2019/357269/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/executive-compensation-white-paper-2019/357269.png","ImageObject",442,249,{"name":88,"@type":89},"Riley","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-10-27","2026-09-23",true,{"@type":98,"interactionType":99,"userInteractionCount":101},"InteractionCounter",{"@type":100},"ViewAction",10,{"@type":103,"mainEntity":104},"FAQPage",[105,111,115],{"name":106,"@type":107,"acceptedAnswer":108},"What is the central idea of the report regarding executive compensation timing?","Question",{"text":109,"@type":110},"It examines how the timing of executive compensation can support a CEO’s long-term decision-making in public organizations by shifting incentives toward longer horizons.","Answer",{"name":112,"@type":107,"acceptedAnswer":113},"Why does the report critique heavy reliance on short-term incentives?",{"text":114,"@type":110},"It explains that focusing only on short-term outcomes can create adverse incentives and prevent companies from positioning for overall wellbeing and long-term performance.",{"name":116,"@type":107,"acceptedAnswer":117},"Which behavioral insights are most relevant to the bonus component?",{"text":118,"@type":110},"The report identifies myopic loss aversion and hyperbolic time discounting as the primary behavioral insights linked to short-term incentive (bonus) design.","https://schema.org",{"og:url":78,"og:type":121,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":123,"canonical":78},"index,follow",{"doc_id":125,"site_id":56},357269,1791731411,{"code":4,"msg":5,"data":128},{"doc_id":125,"user_id":129,"nickname":88,"user_avatar":130,"doc_module":9,"category_id":8,"category_name":11,"doc_title":59,"doc_description":61,"doc_content":131,"file_id":132,"file_url":133,"file_type":134,"file_size":135,"view_count":101,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":136,"language":137,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":138,"faqs":139,"seo_title":140,"seo_description":61,"update_tm":141,"read_time":142},1374391975076,"https://ap-avatar.wpscdn.com/avatar/14000253ca4ec9f6853?x-image-process=image/resize,m_fixed,w_180,h_180&k=1783305029341752051","Executive Compensation White Paper  \nBy  \nPatricia Arehart, Sarah Levitin , Allison Vernerey May, 2019  \nReport in partnership with  \nas part of the MBA elective course MK838 “Behavioral Insights Lab”  \nUnder the supervision of  \nAriel Babcock (Managing Director, FCLT Global), Romain Cadario (Susilo Senior Academic Researcher), Matthew Leatherman (Research Director, FCLT Global) , and Prof. Nina Mazar (Susilo Co-Director)  \nAbout this Report  \nThis report examines how executive compensation timing can positively influence a CEO’s long-term decision-making at a public organization. Based on the insights generated, interventions based on behavioral insights are recommended, focusing on the time dimension of executive compensation with an overall objective to increase long-term performance metrics within a public organization.  \nExecutive Summary  \nIn recent years and academic findings1, more public companies, and executive compensation packages in particular, are favoring short-term incentives to ultimately drive shortterm outcomes for organizational performance. While, on the outset, this does not appear in anyway harmful or problematic for an organization’s overall performance, research indicates that overall, solely focusing on the short term (both organizationally and the delivery of executive compensation design) does not position the company for most successful overall wellbeing2. Companies have struggled with recognizing the importance of shifting to long-term performance outlooks and, as a result, executive pay design structure still favors short-term incentives, ultimately leading to short-term results. Focusing on the time dimension of executive compensation package design, this report explores how long-term compensation incentives can yield long-term performance measures for a public organization.  \nThe executive compensation package generally consists of a base salary, stock options, bonuses and other compensation benefits. After studying these components, the area where there is most room for testing via behavioral insights is the bonus, otherwise known as the short-term incentive component of the compensation package.  \nThe primary behavioral insights that most directly relate to this component of the compensation package are myopic loss aversion and hyperbolic time discounting. Based on these insights, we have outlined the following intervention idea that can later be tested by the client, FLCTGlobal, and its member organizations. We have also highlighted several insights that are outside the scope of time dimension. Nevertheless, these aspects that have surfaced through our  \n1 \"Short-termism: Insights from Business Leaders,\" FCLTGlobal, January 23, 2014. Accessed April 24, 2019, [https://www.fcltglobal.org/research/reports/article/global-survey-of-business-leaders](https://www.fcltglobal.org/research/reports/article/global-survey-of-business-leaders).  \n2 \"Straight Talk for the Long Term,\" FCLTGlobal, March 16, 2015. Accessed April 24, 2019. [https://www.fcltglobal.org/docs/default-source/default-document-library/straight-talk-for-the-long-term_summary](https://www.fcltglobal.org/docs/default-source/default-document-library/straight-talk-for-the-long-term_summary)  \nvfo2263494db5326c50be1cff0000423a91.pdf?sfvrsn=5651258c_2  \nresearch indicate other areas of intervention that can aid in the overall objective of executive design scheme for the purpose of long term performance objectives company-wide.  \nPart I: Introduction & Behavioral Insights  \nThis paper addresses the ways in which executive compensation, in particular variable performance compensation, influences how executives weigh short-term versus long-term priorities. Many companies intend for variable performance compensation to reward executives proportionally to the degree they generate long-term value for the firm. In practice, many forms of variable pay create adverse incentives for executives to maximize firm value in the short-term, at the expense ","cbCaieNBbmoprtoC","https://ap.wps.com/l/cbCaieNBbmoprtoC","pdf",1101252,22,"English","# Executive Summary\n## Part I: Introduction & Behavioral Insights\n### Short-termism vs. Long-termism","[{\"question\":\"What is the central idea of the report regarding executive compensation timing?\",\"answer\":\"It examines how the timing of executive compensation can support a CEO’s long-term decision-making in public organizations by shifting incentives toward longer horizons.\"},{\"question\":\"Why does the report critique heavy reliance on short-term incentives?\",\"answer\":\"It explains that focusing only on short-term outcomes can create adverse incentives and prevent companies from positioning for overall wellbeing and long-term performance.\"},{\"question\":\"Which behavioral insights are most relevant to the bonus component?\",\"answer\":\"The report identifies myopic loss aversion and hyperbolic time discounting as the primary behavioral insights linked to short-term incentive (bonus) design.\"}]","Executive Compensation White Paper - 2019 | PDF",1790129527,8]