[massysett]

> Similarly, teachers must be given incentive pay to induce them to exert themselves . . . Do we really believe that giving them $50 more, or even $500 more, as incentive pay will induce them to work harder?

No, I don't believe that at all. The idea is that you give teachers incentive pay to reward high performers and to attract individuals who are better teachers, and to give the high performers a reason to stay in teaching rather than to defect to another field. Similarly, the idea is that you give the CEO incentive pay to incent him to be a CEO, to attract good CEOs, and to keep your good CEO rather than lose him to another company.

Maybe these ideas are flawed, but certainly the notion is not that by giving the CEO incentive pay he will toil for 7 days a week at 14 hours rather than just 6 days at 12 hours.