A Swedish bank may be about to change perceptions of how bonuses affect performance.
Dennis Campbell, a Harvard Business School professor, has been studying how companies design compensation strategies. His work led him to the biggest bank in Sweden,
Handelsbanken caught Campbell’s attention about five years ago. Since then, he’s written two case studies on the Stockholm-based lender, and his conclusions challenge the conventional wisdom.
Campbell says staff at Handelsbanken were highly motivated despite the absence of bonuses...