Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Another Look at Performance-Based Pay Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, October 24, 2005

Another Look at Performance-Based Pay

by: Theresa Sim

A recent study out of Insead comes to an interesting conclusion about performance-based pay among mutual fund managers.

According to the study, managers whose pay is tied to performance tend to work differently from their non-performance-based peers during a bubble. For instance, managers with pay on the line tended to stray from the investing herd during the last dot-com bubble. While their peers were investing heavily in bubble stocks, incentive-based managers focused more on "old-economy" stocks, write the researchers.

With high-enough contractual incentives, the prospect of ranking at the top by diverging from the bubble would more than offset the incentives to have a high, but not the best, performance by riding the bubble," wrote the researchers.

Researchers Massimo Massa, Nishant Dass and Rajdeep Patgiri even go so far to say that incentive-based managers may serve as a "useful counterweight" to future bubbles.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use