Incentive Compensation Study On R&D Team

The article focuses on the incentive compensation of R&D team. Based on the study of R&D team character, the research carries on in the way of TWO ALLOCATIONS. In the first allocation, we focus on R&D team's performance indicators and first allocating mechanism. The basic performance indicators system is established under the help of KPI and balanced score theory. We try to use EVA to solve R&D team's long-term incentive problem in the first allocation. The second allocation is our focus. Based on Holmstrom's model and by the theories of client-agent and games, we design a model named PACEMAKER to solve free rider problem. It suggests that we allocate heavy bonus to the pacemaker and punish the scapegoat of the team when allocating incentive compensation. The paper also studies the model's use in real R&D team, and give a solution on how to decide the team's assignments.Innovation of this paper lies in following three points. First, trying to solve the long-term incentive problem based on EVA; Second, establishing a new incentive allocation model through developing Holmstrom model; Lastly, giving a solution to deciding the assignments of R&D team...