Rethinking International Compensation: From Expatriate and National Cultures to Strategic Flexibility

[Excerpt] We are on the verge of a worldwide restructuring of compensation and reward systems. Even long established, seemingly carved-in-granite cultural norms, such as lifetime employment in Japan and industry-wide bargaining in Germany, are weakening in response to the pressures of a global economy. So also are our previously hard-and-fast assumptions about international compensation -- the idea that pay systems should keep expatriates “economically whole” and the notion that local compensation should be tailored to fit national cultures

A Risk-Return Paradox: Risk, Performance-Based Pay and Performance

[Excerpt] In recent years, strategy researchers have examined the relationship between business risk and performance. The logic underlying this relationship is that organizations facing greater business risk seek to offset it with the prospect of higher financial returns. The research typically involves various financial measures of organization performance regressed on measures of risk. Surprisingly, the findings are contradictory. While some studies report evidence supporting a positive relationship between the risk organizations face and their performance (Aaker & Jacobson, 1987; Fiegenbaum & Thomas, 1988), others reported an inverse relationship (Bowman, 1982, 1984). These different results called into question the basic premise about the form of the risk-return relationship and left a void in understanding why organization decision makers might pursue more risky strategies. Advancing this line of inquiry, Miller and Bromiley (1990) noted that business risk, like financial performance, is multi-dimensional. Several dimensions of business risk emerged from their work including income stream and strategic or financial risk. They suggested that differences reported in the risk-return relationship resulted from different operationalizations of business risk

Issues in Managerial Compensation Research

[Excerpt] Compensation is at the core of any employment exchange (Milkovich & Newman, 1993; Simon, 1951). It is probably the most basic reason people agree to become employees and it serves as a defining characteristic of any employment relationship (March & Simon, 1958). Recently, managers have been bombarded with a profusion of ways to pay employees. There is team-based pay, broad-banding, pay at risk, paying for competencies, paying for skills, and even The New pay. Understanding which of these have the potential to add value and which are relatively more effective is a tough task, like untying the Gordian knot. Rather than simply cutting through the problem (Alexander the Great\u27s tack), managers often seek guidance from research. Yet, researchers have also been bombarded - not just with new practices, but also with new theories. Included in this theoretic barrage is agency theory, tournament models, contingency theory, institutional theory, procedural justice, political influence theory, organizational demography, resource dependency, psychological contracts, and the resource-based view of the firm. The list seems almost endless. If Lord Keynes is correct that theories drive practical peoples\u27 decisions, understanding which of these theories is useful and which is not is important for both compensation researchers and practical decision makers

The Relationship Between Risk, Performance-Based Pay, and Organizational Performance

In this study, we argue that much of the recent agency-based research on performance based pay virtually omits the role of risk. This compensation research has predominantly taken the positive perspective and focused on the incentive properties of performance-based pay, thereby overlooking the important role that risk plays in normative formulations of agency theory (Holmstrom, 1979; Eisenhardt, 1989; Jensen & Meckling; 1976). Building on previous research, such as Beatty and Zajac (1994), we re-introduce risk by investigating its effects on the formation and outcomes of performance-based pay contracts. Specifically, our study examines both the main effects of risk on the structure of compensation contracts and the joint effects of risk and performance-based pay on firm performance. This study is based on data of incumbent managers from 356 companies over the period 1981 to 1988. Financial performance and market data were drawn from the CRSP and COMPUSTAT

The Relationship Between Risk, Incentive Pay, and Organizational Performance

In this study we extend agency based research by examining the role of risk in the structure of managerial compensation and its relationship to organization performance. Our results suggest that organizations facing higher risk do not place greater emphasis on short term incentives, they place less emphasis on it. Also, higher risk firms which rely on incentive pay exhibited poorer performance than high risk firms which de-emphasize incentive pay

On a Proper Meta-Analytic Model for Correlations

Combining statistical information across studies is a standard research tool in applied psychology. The most common approach in applied psychology is the fixed effects model. The fixed-effects approach assumes that individual study characteristics such as treatment conditions, study context, or individual differences do not influence study effect sizes. That is, that the majority of the differences between the effect sizes of different studies can be explained by sampling error alone. We critique the fixed-effects methodology for correlations and propose an advancement, the random-effects model, that ameliorates problems imposed by fixed-effects models. The random-effects approach explicitly incorporates between-study differences in data analysis and provides estimates of how those study characteristics influence the relationships among constructs of interest. Because they can model the influence of study characteristics, we assert that random-effects models have advantages for psychological research. Parameter estimates of both models are compared and evidence in favor of the random-effects approach is presented

Inferring stabilizing mutations from protein phylogenies : application to influenza hemagglutinin

One selection pressure shaping sequence evolution is the requirement that a protein fold with sufficient stability to perform its biological functions. We present a conceptual framework that explains how this requirement causes the probability that a particular amino acid mutation is fixed during evolution to depend on its effect on protein stability. We mathematically formalize this framework to develop a Bayesian approach for inferring the stability effects of individual mutations from homologous protein sequences of known phylogeny. This approach is able to predict published experimentally measured mutational stability effects (ΔΔG values) with an accuracy that exceeds both a state-of-the-art physicochemical modeling program and the sequence-based consensus approach. As a further test, we use our phylogenetic inference approach to predict stabilizing mutations to influenza hemagglutinin. We introduce these mutations into a temperature-sensitive influenza virus with a defect in its hemagglutinin gene and experimentally demonstrate that some of the mutations allow the virus to grow at higher temperatures. Our work therefore describes a powerful new approach for predicting stabilizing mutations that can be successfully applied even to large, complex proteins such as hemagglutinin. This approach also makes a mathematical link between phylogenetics and experimentally measurable protein properties, potentially paving the way for more accurate analyses of molecular evolution

Berkeley Supernova Ia Program I: Observations, Data Reduction, and Spectroscopic Sample of 582 Low-Redshift Type Ia Supernovae

In this first paper in a series we present 1298 low-redshift (z\leq0.2) optical spectra of 582 Type Ia supernovae (SNe Ia) observed from 1989 through 2008 as part of the Berkeley SN Ia Program (BSNIP). 584 spectra of 199 SNe Ia have well-calibrated light curves with measured distance moduli, and many of the spectra have been corrected for host-galaxy contamination. Most of the data were obtained using the Kast double spectrograph mounted on the Shane 3 m telescope at Lick Observatory and have a typical wavelength range of 3300-10,400 Ang., roughly twice as wide as spectra from most previously published datasets. We present our observing and reduction procedures, and we describe the resulting SN Database (SNDB), which will be an online, public, searchable database containing all of our fully reduced spectra and companion photometry. In addition, we discuss our spectral classification scheme (using the SuperNova IDentification code, SNID; Blondin & Tonry 2007), utilising our newly constructed set of SNID spectral templates. These templates allow us to accurately classify our entire dataset, and by doing so we are able to reclassify a handful of objects as bona fide SNe Ia and a few other objects as members of some of the peculiar SN Ia subtypes. In fact, our dataset includes spectra of nearly 90 spectroscopically peculiar SNe Ia. We also present spectroscopic host-galaxy redshifts of some SNe Ia where these values were previously unknown. [Abridged]Comment: 34 pages, 11 figures, 11 tables, revised version, re-submitted to MNRAS. Spectra will be released in January 2013. The SN Database homepage (http://hercules.berkeley.edu/database/index_public.html) contains the full tables, plots of all spectra, and our new SNID template

Hypoaminoacidemia underpins glucagon-mediated energy expenditure and weight loss

Glucagon analogs show promise as components of next-generation, multi-target, anti-obesity therapeutics. The biology of chronic glucagon treatment, in particular, its ability to induce energy expenditure and weight loss, remains poorly understood. Using a long-acting glucagon analog, G108, we demonstrate that glucagon-mediated body weight loss is intrinsically linked to the hypoaminoacidemia associated with its known amino acid catabolic action. Mechanistic studies reveal an energy-consuming response to low plasma amino acids in G108-treated mice, prevented by dietary amino acid supplementation and mimicked by a rationally designed low amino acid diet. Therefore, low plasma amino acids are a pre-requisite for G108-mediated energy expenditure and weight loss. However, preventing hypoaminoacidemia with additional dietary protein does not affect the ability of G108 to improve glycemia or hepatic steatosis in obese mice. These studies provide a mechanism for glucagon-mediated weight loss and confirm the hepatic glucagon receptor as an attractive molecular target for metabolic disease therapeutics

A high-resolution map of human evolutionary constraint using 29 mammals.

The comparison of related genomes has emerged as a powerful lens for genome interpretation. Here we report the sequencing and comparative analysis of 29 eutherian genomes. We confirm that at least 5.5% of the human genome has undergone purifying selection, and locate constrained elements covering ∼4.2% of the genome. We use evolutionary signatures and comparisons with experimental data sets to suggest candidate functions for ∼60% of constrained bases. These elements reveal a small number of new coding exons, candidate stop codon readthrough events and over 10,000 regions of overlapping synonymous constraint within protein-coding exons. We find 220 candidate RNA structural families, and nearly a million elements overlapping potential promoter, enhancer and insulator regions. We report specific amino acid residues that have undergone positive selection, 280,000 non-coding elements exapted from mobile elements and more than 1,000 primate- and human-accelerated elements. Overlap with disease-associated variants indicates that our findings will be relevant for studies of human biology, health and disease