Price versus Non-Price Performance Measures in Optimal CEO Compensation Contracts

2003 ◽  
Vol 78 (4) ◽  
pp. 957-981 ◽  
Author(s):  
John E. Core ◽  
Wayne R. Guay ◽  
Robert E. Verrecchia
Keyword(s):  
Performance Measures ◽  
Relative Weight ◽  
Performance Measure ◽  
Future Research ◽  
Total Compensation ◽  
Compensation Contracts ◽  
Price Performance ◽  
Ceo Incentives ◽  
Annual Total ◽  
Increasing Function

We empirically examine standard agency predictions about how performance measures are optimally weighted to provide CEO incentives. Consistent with prior empirical research, we document that the relative weight on price and non-price performance measures in CEO cash pay is a decreasing function of the relative variances. Agency theory speaks to the weights in total compensation (annual total pay and changes in the CEO's equity portfolio value), however, and we document that very little of CEOs' total incentives come from cash pay. We also document that variation in the relative weight on price and non-price performance measures in CEO total compensation is an increasing function of the relative variances. The conflicting results using total compensation indicate that existing findings on cash pay cannot be interpreted as evidence supporting standard agency predictions. Based on our results, we suggest approaches for future research on performance measure use in CEO total compensation.

scholarly journals Twelve-Month Retention in and Impact of Enhance®Fitness on Older Adults in Hawai‘i

2019 ◽  
Vol 2019 ◽  
pp. 1-7
Author(s):  
Michiyo Tomioka ◽  
Kathryn L. Braun ◽  
Yan Yan Wu ◽  
Kay Holt ◽  
Paula Keele ◽  
...  
Keyword(s):  
Older Adults ◽  
Physical Performance ◽  
Performance Measures ◽  
Healthy Aging ◽  
Low Cost ◽  
Exercise Program ◽  
Performance Measure ◽  
Self Report ◽  
Future Research ◽  
Health Promotion Initiative

Introduction. Enhance®Fitness is a low-cost group exercise program designed specifically for older adults (60+ years) to improve physical performance. The Hawai‘i Healthy Aging Partnership, a statewide health promotion initiative, has continuously offered Enhance®Fitness to Hawai‘i’s multicultural population since 2007. This study examined 12-month participation in and impact of Enhance®Fitness on physical performance among older adults in Hawai‘i. Method. Linear mixed-effects models were applied to analyze the physical performance measures (chair-stands, arm curls, and the up-and-go test) collected at baseline (month 0) and at 4, 8, and 12 months. We also compared the characteristics of participants who participated in the program for 12 months with those who dropped out in order to gain insights on participant retention. Results. Of 1,202 older adults with baseline data, 427 (35.5%) were continuously enrolled in Enhance®Fitness for 12 months and participated in follow-up data collection. On average, participants attended 63.7% of thrice-weekly classes each month. Participants’ physical performance measures improved after 4 months, continued to improve until 8 months, and were maintained thereafter. Besides continuous attendance, performance-measure improvements were associated with younger age, male gender, living with others (vs. alone), and fewer chronic conditions. Compared to those who completed 12 months of the program, the 775 who left the program over the course of the year were more likely to be younger, to be Caucasian (vs. Asian or Pacific Islander), to self-report depression as a chronic condition, and to have lower levels of fitness at baseline. Common reasons for dropping out were illness, relocation, time conflicts, lost interest, and transportation issues. Conclusions. Long-term participants in Enhance®Fitness initially improved and then maintained physical performance. Future research is needed to identify strategies to maintain enrollment of older adults in the exercise programs over time.

Identification of specific metrics for sustainable lean manufacturing in the automobile industries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Naveen Kumar ◽  
Mathiyazhagan Kaliyan ◽  
M. Thilak ◽  
Ángel Acevedo-Duque
Keyword(s):  
Literature Review ◽  
Performance Measures ◽  
Lean Manufacturing ◽  
Performance Metrics ◽  
Research Direction ◽  
Performance Measure ◽  
Extensive Study ◽  
Future Research ◽  
Content Type ◽  
Specific Performance

PurposeThis study explains the importance of performance measures and identifies the specific performance measures of sustainable lean manufacturing (SLM) for automobile industries. Awareness towards sustainability and continuous improvement approaches demand monitoring of the sustainable lean impact on organization/industry, and hence, identifying the specific performance metrics is of peak importance.Design/methodology/approachIn this study, specific metrics for social, economic and environmental performance are identified from a systematic literature review of 82 significantly related journal articles. The importance of the identified metrics is assessed with the help of questionnaire responses from a group of industrial experts.FindingsPerformance indicators are statistically analyzed category wise and assessed. The key metrics are summarized based on the survey data followed by a discussion with industrial experts. From this study, performance measures have been identified and validated through hypothesis testing for Indian automobile industries. Certification of IATF16949 implementation found an important vertical for SLM implementation. In this study, SLM implementation initiatives are discussed, and reward scheme for outstanding performers are identified as important initiatives are followed by small improvement culture.Practical implicationsThe proposed discussion of this study is useful for industrialist and researchers, as SLM performance measures are well explained for Indian automobile industries. In this study, future research direction is also explained related to other industries. These summarized performance measures will help to maintain SLM in industries.Originality/valueThis paper presents the original literature review based on the study of SLM, as no extensive study is available where SLM performance measure explained for automobile industries. Key initiatives and vertical of SLM are well explained for Indian automobile industries. This study proposed a complete framework for SLM implementation considering competitive manufacturing targets.

Effects of Accounting-Method Choices on Subjective Performance-Measure Weighting Decisions: Experimental Evidence on Precision and Error Covariance

2005 ◽  
Vol 80 (4) ◽  
pp. 1163-1192 ◽  
Author(s):  
Ranjani Krishnan ◽  
Joan L. Luft ◽  
Michael D. Shields
Keyword(s):  
Performance Measures ◽  
Error Variance ◽  
Spillover Effects ◽  
Performance Measure ◽  
Incentive System ◽  
Experimental Setting ◽  
Error Covariance ◽  
Psychology Theory ◽  
Optimal Weighting ◽  
Similarity And Difference

Performance-measure weights for incentive compensation are often determined subjectively. Determining these weights is a cognitively difficult task, and archival research shows that observed performance-measure weights are only partially consistent with the predictions of agency theory. Ittner et al. (2003) have concluded that psychology theory can help to explain such inconsistencies. In an experimental setting based on Feltham and Xie (1994), we use psychology theories of reasoning to predict distinctive patterns of similarity and difference between optimal and actual subjective performance-measure weights. The following predictions are supported. First, in contrast to a number of prior studies, most individuals' decisions are significantly influenced by the performance measures' error variance (precision) and error covariance. Second, directional errors in the use of these measurement attributes are relatively frequent, resulting in a mean underreaction to an accounting change that alters performance measurement error. Third, individuals seem insufficiently aware that a change in the accounting for one measure has spillover effects on the optimal weighting of the other measure in a two-measure incentive system. In consequence, they make performance-measure weighting decisions that are likely to result in misallocations of agent effort.

Abstract 3429: Implementation of Electronic Medical Record Stroke Templates Increases Compliance with Stroke Performance Measures

Stroke ◽  
2012 ◽  
Vol 43 (suppl_1) ◽  
Author(s):  
Crismely A Perdomo ◽  
Vepuka E Kauari ◽  
Elizabeth Suarez ◽  
Olajide Williams ◽  
Joshua Stillman ◽  
...  
Keyword(s):  
Medical Record ◽  
Electronic Medical Record ◽  
Performance Measures ◽  
New York State ◽  
Stroke Care ◽  
Performance Measure ◽  
Performance Comparison ◽  
York State Department ◽  
Free Text ◽  
And Performance

Background and Purpose The literature demonstrates how utilizing evidence-based, standardized stroke care can improve patient outcomes; however, the contribution of electronic medical record (EMR) systems may also impact outcomes by ensuring utilization and compliance with established stroke performance measures, facilitating and improving documentation requirements, and standardizing approach to care. In 2008, documentation in patients’ medical records was done in combination of paper and a template free EMR. Originally, the EMR was used for order entry, then transitioned to full electronic documentation in 2009. At that time we implemented our stroke templates and performance measures based on regulatory standards. We hypothesized that the stroke template implementation would help us achieve performance measure criteria above state benchmarks as set out by the New York State Department of Health (NYS DOH). Methods Implementation was phased in [over 18 months], initially using a template that only included neurological assessment and free text fields for stroke measures. By July 2010, existing templates were modified and additional stroke templates were implemented to meet new regulatory requirements and meaningful use criteria. Retrospective data review was conducted for performance comparison between 2008 -- one year prior to EMR/template implementation -- and 2010. In Quarter 1 of 2011 EMR was also implemented in the Emergency Department (ED). Data was reviewed for compliance with stroke measures. Results Documentation compliance substantially improved between 2008 and Quarter 1 2011: Compliance for these measures has been maintained ≥ 85% since November 2010, ≥ 90% Q1 2011 Conclusions The EMR implementation of stroke templates and performance measures can produce substantial improvement in performance measure compliance. Future steps will include automated documentation alerts to retrieve information and real time discovery of missing documentation for concurrent quality review and improvement

A national survey of telemedicine use by US emergency departments

2018 ◽  
Vol 26 (5) ◽  
pp. 278-284 ◽  
Author(s):  
Kori S Zachrison ◽  
Krislyn M Boggs ◽  
Emily M Hayden ◽  
Janice A Espinola ◽  
Carlos A Camargo
Keyword(s):  
Emergency Department ◽  
Emergency Departments ◽  
Multivariable Analysis ◽  
Clinical Applications ◽  
Future Research ◽  
Emergency Medical Care ◽  
Adults And Children ◽  
Annual Total ◽  
National Emergency ◽  
Total Visit

Objective Telemedicine has the potential to improve the delivery of emergency medical care: however, the extent of its adoption in United States (US) emergency departments is not known. Our objective was to characterise the prevalence of telemedicine use among all US emergency departments, describe clinical applications for which it is most commonly used, and identify emergency department characteristics associated with its use. Methods As part of the National Emergency Department Inventory-USA survey, we queried all 5375 US emergency departments open in 2016. Multivariable logistic regression analyses identified characteristics associated with emergency department receipt of telemedicine services. Results Overall, 4507 emergency departments (84%) responded to our survey, with 4031 responding to both telemedicine questions (75%). Although 1694 emergency departments (42%) reported no telemedicine in 2016, most did: 1923 (48%) emergency departments received telemedicine services, 149 (4%) emergency departments received telemedicine services and were in hospitals that provided telemedicine, and 265 emergency departments (7%) did not receive telemedicine but were in hospitals that provided telemedicine services. Among emergency departments receiving telemedicine, the most common applications were stroke/neurology (76%), psychiatry (38%), and paediatrics (15%). In multivariable analysis, telemedicine-receiving emergency departments had higher annual total visit volume for adults and lower annual total visit volume by children; were less likely to be academic or freestanding; and varied by region. In multivariable analysis, emergency departments in telemedicine-providing hospitals had higher annual total visit volume for adults and children, were more likely to be academic and were less likely to be freestanding. Conclusion In 2016, telemedicine was used in most US emergency departments (58%), especially for stroke/neurology and psychiatry. Future research is needed to understand the value of telemedicine for different clinical applications, and the barriers to its implementation.

A Tutorial on the Use of ROC Analysis for Computer-Aided Diagnostic Systems

2005 ◽  
Vol 27 (3) ◽  
pp. 181-198 ◽  
Author(s):  
Ulrich Scheipers ◽  
Christian Perrey ◽  
Stefan Siebers ◽  
Christian Hansen ◽  
Helmut Ermert
Keyword(s):  
Performance Measures ◽  
Roc Curve ◽  
Roc Analysis ◽  
Real Life ◽  
Performance Measure ◽  
Diagnostic Systems ◽  
Life Data ◽  
Separation Threshold ◽  
Real Life Data ◽  
Computer Aided

The application of the receiver operating characteristic (ROC) curve for computer-aided diagnostic systems is reviewed. A statistical framework is presented and different methods of evaluating the classification performance of computer-aided diagnostic systems, and, in particular, systems for ultrasonic tissue characterization, are derived. Most classifiers that are used today are dependent on a separation threshold, which can be chosen freely in many cases. The separation threshold separates the range of output values of the classification system into different target groups, thus conducting the actual classification process. In the first part of this paper, threshold specific performance measures, e.g., sensitivity and specificity; are presented. In the second part, a threshold-independent performance measure, the area under the ROC curve, is reviewed. Only the use of separation threshold-independent performance measures provides classification results that are overall representative for computer-aided diagnostic systems. The following text was motivated by the lack of a complete and definite discussion of the underlying subject in available textbooks, references and publications. Most manuscripts published so far address the theme of performance evaluation using ROC analysis in a manner too general to be practical for everyday use in the development of computer-aided diagnostic systems. Nowadays, the user of computer-aided diagnostic systems typically handles huge amounts of numerical data, not always distributed normally. Many assumptions made in more or less theoretical works on ROC analysis are no longer valid for real-life data. The paper aims at closing the gap between theoretical works and real-life data. The review provides the interested scientist with information needed to conduct ROC analysis and to integrate algorithms performing ROC analysis into classification systems while understanding the basic principles of classification.

scholarly journals Alternative shoe closure designs alter biomechanical performance during agility-based movements

2020 ◽  
Author(s):  
Moira Pryhoda ◽  
Rachel Wathen ◽  
Jay Dicharry ◽  
Kevin Shelburne ◽  
Bradley Davidson
Keyword(s):  
Mechanical Properties ◽  
Performance Measures ◽  
Performance Measure ◽  
Male Athletes ◽  
Impaired Performance ◽  
Performance Improvements ◽  
Two Measures ◽  
Ground Contact Time ◽  
Improved Performance ◽  
Consistent Performance

The objective of this research was to determine if three alternative shoe upper closures improve biomechanical performance measures relative to a standard lace closure in court-based movements. NCAA Division 1 and club-level male athletes recruited from lacrosse, soccer, tennis, and rugby performed four court-based movements: Lateral Skater Jump repeats (LSJ), Countermovement Jump repeats (CMJ), Triangle Drop Step drill (TDS), and Anterior-Posterior drill (AP). Each athlete performed the movements in four shoe upper closures: Standard Closure, Lace Replacement, Y Wrap, and Tri Strap. Ground contact time, peak eccentric rate of force development (RFD), peak concentric GRF, peak concentric COM power, eccentric work, concentric work, and movement completion time were measured. Tri Strap saw improvements in four of seven biomechanical variables during CMJ and LSJ and one variable during TDS. Lace Replacement delivered improvements in one performance measure during CMJ, LSJ, and AP, and two variables in TDS. Y Wrap improved performance in three performance measures during LSJ and impaired performance in two measures during CMJ and three measures during AP. Tri Strap provided the most consistent performance improvements across all movements. This study allowed for the mechanical properties of the shoe lower to remain consistent across designs to examine if an alternative shoe upper closure could enhance performance. Our results indicate that increased proprioception and/or mechanical properties due to the alternative closures, especially Tri Strap, improves athlete performance, which concludes that the design of the shoe upper is an essential consideration in shoe design.

scholarly journals Exploring competitive strategic performance consistency in service organizations

2018 ◽  
Vol 22 (2) ◽  
pp. 165-182 ◽  
Author(s):  
Carlos F. Gomes ◽  
Mohammad Najjar ◽  
Mahmoud M. Yasin
Keyword(s):  
Performance Measures ◽  
Open System ◽  
Customer Orientation ◽  
Dynamic Environment ◽  
Service Organizations ◽  
Future Research ◽  
Content Type ◽  
Strategic Orientations ◽  
And Performance ◽  
Practical Implications

PurposeAs service organizations move toward the open system strategic customer orientation, they need to ensure consistency among competitive methods, performance measures and strategies utilized. This paper aims to examine the relationships among these important facets of today’s service organizations. The study at hand examines the relationship among competitive methods, implicit strategy and performance measures used by Portuguese service organizations.Design/methodology/approachThis research uses a survey-based methodology. Factor analysis, cluster analysis and regression analysis procedures are used to analyze the collected data from Portuguese service organizations.FindingsBased on the results of this study, it appears that some of the studied service organizations are steadily moving toward the open system mode of strategy, competitive methods and performance measurement. However, the majority of the service organizations examined appeared to be in a state of strategic confusion, as they appear to lack the consistency among competitive methods, performance measures and desired strategic orientations.Research limitations/implicationsThe sample used in this study is specific in nature, as it includes only Portuguese service organizations. Therefore, the results of this study should be interpreted with caution. Future research in other cultural service settings is recommended. Such research should emphasize the exploration of theoretical frameworks, which tend to practically integrate competitive methods, performance measures and strategic orientation.Practical implicationsThis study has direct practical implications for service managers, as they attempt to integrate their organizational systems. As such, the research in this study paves the way toward the practical integration and consistency among competitive methods, performance measures and strategic orientations needed to enhance the customer orientation. In this context, such integration and consistency are essential to enhance the strategic competitiveness of today’s service organizations operating in a dynamic marketplace.Originality/valueThis research combines bodies of knowledge dealing with competitive methods, performance measures and their impact on strategic orientations. The conceptual framework offered in this research attempts to facilitate the understanding for consistent practice pertaining to the competitiveness of the open system service organization in a dynamic environment. Such consistency is essential to the competitiveness of the organization in a dynamic environment.

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