Securities Law News

Banker Pay Theory Upended by Harvard Expert in Swedish Study (1)

July 13, 2020, 10:40 AM

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, Svenska Handelsbanken AB, which he says uses a model that raises serious questions about how well bonuses drive results.

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.

Dennis Campbell
Source: Harvard Business School

Campbell says staff at Handelsbanken were highly motivated despite the absence of bonuses...

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