Team-Based Incentive Compensation is Vital to Successful Operating Turnarounds

Abstract

In recent months, greedy executives have given pay-based bonuses a bad rap. That’s unfortunate, because incentive compensation is a vital, essential, and frequently overlooked tool when it comes to turning around a poorly performing company. This is especially true when the focus is on employee incentive compensation. If substantial improvement is to be made to a struggling company’s EBITDA, a seismic change in the entire corporate culture must take place, starting at the grassroots level where employees work. A turnaround plan that incorporates team-based performance and results-based incentive bonuses for managers and employees can create amazing results in a financially challenged company.