Tina Lerner, CEO of Rx Capital, was the problem. Her three-year-old hedge fund has been very profitable, but in 2004, one of her four analysts stocks lost a lot of money for the firm. If Lerner followed her current compensation system, designed to encourage teamwork, it will wind up significantly underpay her other analysts, all of whom were executed well. Should it follow a system of compensation or not? And what should be done about the inefficient analyst? "Hide
by Boris Groysberg, Robin Abrahams, Victoria W. Winston Source: Harvard Business School 20 pages. Publication Date: November 17, 2008. Prod. #: 409058-PDF-ENG
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