Ryan Harvey
Darren Moskovitz
Virginia Rhodes
Incentive plans do more than determine pay. They send clear signals about what matters, where leaders should focus their attention, and which outcomes the organization values most.
In this episode of The Executive Compensation Podcast, Ryan Harvey, Virginia Rhodes and Darren Moskovitz explore how incentive plan design can shape executive behavior, reinforce strategic priorities, and sometimes create unintended consequences. They discuss what boards and compensation committees should consider when evaluating whether their plans are encouraging the right decisions and supporting long-term value creation.
Key Takeaways
• Incentive plans communicate priorities, whether intentionally or not.
• Metrics and goals can influence where executives focus their time, attention and decision-making.
• A technically sound plan can still produce unintended behaviors if its signals are not aligned with the business strategy.
• Boards should look beyond plan mechanics and consider what the design is actually encouraging executives to do.
• Effective incentive design reinforces strategy while remaining clear, measurable and defensible.
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