As part of securing the company’s values and/or strategy for (foreign) subsidiaries, the company has a performance management program that is partly tied to stocks and wages, but also other motivational aspects. Unfortunately, these programs do not fully work as intended, as one or more management groups in the subsidiaries act to optimize personal gain through the program. Thus, the discussion focuses on how corporate HQs can ensure the usability of the programs.
SPECIFIC ISSUES AND KNOWLEDGE NEEDED TO MAKE DECISIONS
- What solution seems to work best when trying to get subsidiary management to implement the desired values and strategies?
- What forms of incentives can be utilized, other than wage and stocks?
- When parts of the incentives program are tied to stocks, which can be claimed if the company is sold, a large part of the stock owners seems to sub-optimize in relation to the possibility of a sale – can this be avoided, and how?
- How do we achieve a “stay on target” culture through an incentives program?