New evidence on the effectiveness of bonus payments in creative, analytical jobs

 

A few years ago a NY hedge fund boss asked me a strange question. I thought it strange because I believe he knew in advance how I would answer, and how he would respond to my answer. And both of us knew that nothing either he or I said would make a blind bit of difference to how hedge fund bosses ran their businesses. The question was: What do you think of individual performance bonuses? Continue reading

With A View To A Killing

 

The Lakeview Resort is one of Kerala’s loftiest hotels, not only because it is situated some three thousand metres above sea level, but because it is one of the few resorts to have qualified for the coveted five-star rating. The residence is situated in the middle of endless acres of manicured Indian tea plantations and overlooks a picturesque valley and the famous lake that inspired its name. Since the days of English colonisation, when the station was established, visitors have flocked there simply to be able to gaze eastwards at dawn as the sun rises between the hill peaks that separate Kerala from the neighbouring state of Tamil Nadu. The dawn mist acts as a prism, throwing the blaze of colours progressively from the sky, down onto the lush carpet of tea bushes and finally scintillating across the cool waters of the lake. The Lakeview is also a hotbed of behavioural economics. Continue reading