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Performance-Related Pay in Danish Cooperative Creameries

Participation in the Age of Globalization and Information

ISBN: 978-0-76231-278-8, eISBN: 978-1-84950-392-1

Publication date: 5 January 2006

Abstract

Following the formation of the first cooperative creamery in Denmark in 1882, the number of creameries adopting this particular organisational form grew rapidly over the next 20 years. These cooperatives had to delegate the running of the creamery to a professional manager leading to potential incentive problems. This paper documents the extensive use of performance related pay. Three findings stand out. Firstly, the creameries’ awareness of the incentive problems. Secondly, the incentive contracts used were often quite complex and sometimes non-linear. Thirdly, contract terms often varied over time, even within individual creameries.

Citation

Hviid, M. (2006), "Performance-Related Pay in Danish Cooperative Creameries", Kalmi, P. and Klinedinst, M. (Ed.) Participation in the Age of Globalization and Information (Advances in the Economic Analysis of Participatory & Labor-Managed Firms, Vol. 9), Emerald Group Publishing Limited, Leeds, pp. 149-176. https://doi.org/10.1016/S0885-3339(05)09005-8

Publisher

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Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited