New technologies have been disrupting business for decades, especially since the internet became widespread in the late 1990s. But a new wave of innovation, centered on artificial intelligence, big data analytics, and the internet of things, is now intensifying the pace and magnitude of disruption. AI-powered advances by themselves, according to a 2019 McKinsey study, could boost annual global GDP by $13 trillion, or an additional percentage point.
Is Your Executive Compensation Plan Undermining Your Mission?
Businesses are becoming more agile, but pay plans have not changed accordingly.
October 08, 2020
Summary.
For many businesses, strategic stability has fallen from its pedestal in favor of strategic agility, but executive compensation has not changed accordingly. Boards need to calibrate compensation to the state of their business. The authors identify three kinds of companies — stable innovators, intermittent disruptors, and ongoing disruptors — and identify incentive structures for each.
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New!
HBR Learning
Digital Intelligence Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Digital Intelligence . Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Excel in a world that's being continually transformed by technology.