BSF CASE QUESTIONS FOR PREPARATION

BSF focuses on performance measurement, linking of incentives to firm strategy, and implicit contracting over incentives. Please come to class prepared to discuss your point allocations from the 2^nd question below, and to argue and defend your analysis.

What are the causes of complaints about the 1982 compensation decisions at BSF?

What are the objectives of the compensation system?

How does its design relate to other policies and the strategy of the firm?

What are the organizational and strategic issues facing the firm?

How would you allocate a total of 1,000 points to partners B-H listed in Exhibit 2? (A is not a lawyer, but represents medians). Explain your criteria and logic clearly. Be prepared to present your allocations, and to explain and defend them in class.

What changes should BSF make in response to these problems? Explain.

If you select this case for your oral, I have some specific materials that I would like you to use.