Bonus systems

3.2 EVA in Bonus systems (A chapter in a study)

A chapter from a long study (by Esa Mäkeläinen). Please click the corresponding chapter number (3.2.) from the table of contents after you have chosen this link.

http://www.evanomics.com/page02.shtml

The long-run Performance of Firms Adopting Compensation Plans Based on Economic Profit.

A paper that examines the long-run performance of firms adopting EVA-like plans. Written by Cris Hogan and Craig Lewis. Professors from Owen Graduate School of Management, Vanderbilt University.

http://www.evanomics.com/links/EVA_May00.pdf

Evidence on EVA

A paper that tests the correlation between EVA and shareprices and the effectiveness of EVA based compensation plans. Written by following professors: GARY C. BIDDLE, Hong Kong University of Science & Technology; ROBERT M. BOWEN University of Washington; JAMES S. WALLACE University of California, Irvine

http://papers.ssrn.com/paper.taf?ABSTRACT_ID=178168

2.2.3 Evidence on EVA in management bonus plans

A chapter from a long study (by Esa Mäkeläinen). Please click the corresponding chapter number (2.2.3.) from the table of contents after you have chosen this link.

http://www.evanomics.com/page02.shtml

Eli Lilly Is Making Shareholders Rich. How? By linking pay to EVA.

Eli Lilly, maker of Prozac, is among a pioneering group of companies that are tying pay to EVA goals. FORTUNE's Justin Martin spoke with Randall Tobias, the pharmaceutical giant's CEO, to learn how such a system is paying off for the company.

http://www.pathfinder.com/@@rdo9wg...Q10PV/fortune/magazine/1996/960909/fro.shtml