Are long‐term incentive plans an effective and efficient way of motivating senior executives?

Research on senior executive reward has typically explored the connection between pay, performance and the alignment of interests of executives and shareholders. This article examines the relationship between reward and motivation, drawing on the psychological, behavioural economics and decision‐making literatures. Based on an empirical study of FTSE 350 senior executives, the research examines whether long‐term incentive plans are an effective and efficient way of motivating executives, taking into account risk, time discounting, uncertainty and fairness. The article concludes that the way executives frame choices, perceive value, assess probability, evaluate temporal effects and respond to uncertainty means that long‐term incentive plans (LTIPs) are generally not efficient and are often not effective in meeting their objectives. It proposes that, in its current form, agency theory does not provide a sound basis for modelling senior executive reward, and suggests five areas for development.     

Environmental Quality and Social Equality:

Abstract . The problems and contradictions which arise when an economically “poor” region is mandated to remain environmentally “pure“ are examined. The Adirondack region of New York State is such an area, being now protected by the 1972 Adirondack Park Land Use Plan. This limitation on development for environmental reasons has serious consequences for the 120,000 permanent residents within the park boundaries who, through their legislators, vigorously opposed the controls. A number of examples of the conflicts which have arisen are cited and a framework for “comprehensive” rather than “fragmented”planning is suggested.     

The role of technical expertise in firm governance structure: evidence from chief financial officer contractual incentives

We provide evidence that the presence of technical expertise in firm governance structure reduces reliance on contractual incentives to control the potential agency problem for executives whose responsibilities require specialized knowledge. Specifically, we find that firms with financial expertise in the form of a board finance committee, or a chief executive officer with a financial background, tend to use lower levels of incentive‐based compensation for their chief financial officers. Our findings suggest financial experts provide stronger oversight and/or direction with regard to firm financial policies and strategies, thereby allowing firms to reduce reliance on incentive compensation. Our study provides insight into the role of technical expertise and board committees in firm governance, and into the benefits of common functional expertise within top management teams. Copyright © 2010 John Wiley & Sons, Ltd.     

On interpreting probability distributions fitted to times of first adoption

This paper attempts to interpret the standard statistical distributions in the innovation diffusion context. A simple rule is provided for classifying a statistical distribution as being an internal, an external, or a mixed influence model. Two distributions, suitable as flexible mixed influence models, are used to analyze several well-known data sets.     

Not every public sector is a field: evidence from the recent overhaul of the English NHS

ABSTRACT

A structural interpretation of institutionalism has become dominant in public management research. Yet, studies tend to assume an institutional-level phenomenon without specifying how an organizational field was identified or whether structural characteristics can indeed be found in the organizational population studied. This lacuna is illustrated by exploring the structural interpretation of the field construct in the case of the recent overhaul of English primary care. Findings demonstrate the need for a more robust application of institutionalism in empirical research. Possible research problems for public management and a future research agenda based on a more relational approach to fields are discussed.     

Shark bytes: message sensation value and emotional appeals in shark diving websites

Websites designed to promote risky activities provide a novel context for studying the role of emotional appeals and message sensation value (MSV) in risk messages in order to ultimately understand the type of messages that motivate people to engage in risk behaviors. Framed in theories of message design and emotion, this study investigates representations of threat, efficacy, and the extent to which risk messages appeal to a range of positive and negative emotions through the examination of 53 shark diving websites using content analysis and computer generated linguistic analysis. Results indicate that few websites provide explicit threat information (i.e. severity and susceptibility) but many do present implicit threats. Efficacy-related messages were present on all websites. Positive emotion was more common than negative emotion and there is little representation of the traditional components of MSV. Implications for theory development and communication about risk-seeking are addressed.     

African economic development in a comparative perspective

Conventional explanations of poor African economic performancegenerally fail to pay adequate attention to causal mechanismsof growth, decline and stagnation. Many African countries experiencedinvestment booms after independence but, in contrast to EastAsian newly industrialising economies, these were not sustainedowing to failure to establish a virtuous growth circle involvingcomplementary increases in savings and exports. Structural adjustmentprogrammes dismantled stat-mediated mechanisms of accumulationwithout putting viable alternatives in place, and failed totackle the structural constraints which impede productivitygrowth in agriculture. A new policy approach, drawing on theexperience of both post-colonial and adjustment periods, isnecessary.     

Labour Management as Development of the Integrated Developmental State in China

The application of the developmental state concept outside its birthplace in East Asia is generally unsuccessful. The culprit is the ‘laundry list’ method commonly seen in the literature. In this paper a ‘strategic capacity’ conceptualisation is used instead, with emphasis on its diverse institutional underpinnings. The paper demonstrates that the Chinese state's approach to industrial relations is integrated with its national development strategy and that crafting institutions of labour management is part of the state's effort at building up its strategic capacity for political, social and economic management. The study delineates the factors shaping labour management institutions, paying special attention to the communist heritage that sets China apart from other developmental states. As such, the concept of developmental state has much wider application.     

Biotechnology as a low-level-of-coherence policy priority: effectual-targeting and the need for learning and experimentation capabilities

During the last two decades, policymakers in various positions have been adopting a systems-approach to policy thinking. However, in contrast with the quasi-evolutionary way in which policy is thought of and conceptualised it seems that policy doing is still being guided by ‘market-failure’ justifications causing actual policies to remain narrow in their scope. In this paper we sidestep this analytical divide of thinking/doing by developing a co-evolutionary framework that utilises a more productive analytical divide of means/ends. That is to say we focus on a process of co-evolution of a higher-order, one which takes place ‘inside’ the agent of policy herself, and involves changes in the ways ‘means’ and ‘ends’ are understood and acted upon. Conceptualising policy problems in terms of means/ends contributes to current debates by rendering the difficulty that countries are facing in their attempts to prioritise biotechnology more intelligible and thus manageable.