... and foreign ownership. Originality/value The paper provides new empirical evidence on the use of performance‐related pay. The results support an interpretation of incentive pay as motivated by agency problems, and provide new evidence on the relationship between payment schemes and institutions...

... of profit margins in the two preceding years is the most important predictor: variability of sales or profits is a weak predictor. © Emerald Group Publishing Limited 2004 Pay structures Profits method Compensation Payments The idea that workers might be paid in part out of profits...