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The book concludes with a final chapter that provides an overall assessment of the value of incentives in guiding executive behavior.
In it, Kolb argues that incentive compensation for executives is so problematic and so prone to error that the social value of giving huge incentive compensation packages is likely to be negative on balance.
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Her tale starts in the couples’ counseling office, where her soon-to-be ex-husband drops the bomb that he’s seeing someone else.From this literature, there are several reasons for believing that one can set incentives in executive compensation with a high rate of success in guiding CEO behavior, and one might expect CEO compensation to be a textbook example of the successful use of incentives.