The founder and CEO of Amazon seems to agree with Dan Pink’s famous TED video that incentive compensation plans can be detrimental to creativity, cooperation and–ultimately–companies.
We pay very low cash compensation relative to most companies. We also have no incentive compensation of any kind. And the reason we don’t is because it is detrimental to teamwork.
The upside for workers is in Amazon stock. That is quite an incentive, amounting to $20+ billion for Bezos and millions for many individual employees.