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Executive Compensation Patterns and Practices in Minnesota and Wisconsin Cooperatives

Author

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  • Trechter, David D.
  • King, Robert P.

Abstract

Cooperatives face unique challenges in compensating managers because it is more difficult to link the financial interests of the manager to those of the cooperative. One way to overcome this challenge is to use performance-based bonuses. This study of cooperatives in Minnesota and Wisconsin found that such bonuses are infrequently used. Further. evidence indicates that existing bonuses tend to be linked more to the size of the cooperative (sales. assets) than to profitability. These results suggest that more attention to this critical area is warranted.

Suggested Citation

  • Trechter, David D. & King, Robert P., 1995. "Executive Compensation Patterns and Practices in Minnesota and Wisconsin Cooperatives," Journal of Cooperatives, NCERA-210, vol. 10, pages 1-15.
    • Handle: RePEc:ags:jlcoop:46180
    DOI: 10.22004/ag.econ.46180
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    Cited by:

    1. King, Robert P. & Trechter, David D. & Cobia, David W., 1998. "Managerial Compensation in Midwestern Cooperatives: Results from a Follow-up Study," Journal of Cooperatives, NCERA-210, vol. 13, pages 1-9.
    2. Trechter, David D. & McGregor, Murray J. & Murray-Prior, Roy B., 2003. "A Neo-Institutional Assessment of Cooperative Evolution: Comparing the Australian Wheat Board and the Fonterra Dairy Group," 2003 Annual Meeting, October 29 31801, NCERA-194 Research on Cooperatives.
    3. Michael Kopel & Marco Marini, 2014. "Strategic delegation in consumer cooperatives under mixed oligopoly," Journal of Economics, Springer, vol. 113(3), pages 275-296, November.
    4. Michael Kopel & Marco A. Marini, 2012. "Optimal Compensation Structure in Consumer Cooperatives under Mixed Oligopoly," DIS Technical Reports 2012-06, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    5. Michael Kopel & Marco A. Marini, 2012. "Optimal Compensation Structure in Consumer Cooperatives under Mixed Oligopoly," DIS Technical Reports 2012-06, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    6. Ortmann, Gerald F. & King, Robert P., 2006. "Small-Scale Farmers in South Africa: Can Agricultural Cooperatives Facilitate Access to Input and Product Markets?," Staff Papers 13930, University of Minnesota, Department of Applied Economics.
    7. Peter J. Baldacchino & Chantelle Camilleri & Simon Grima & Frank H. Bezzina, 2017. "Assessing Incentive and Monitoring Schemes in the Corporate Governance of Maltese Co-operatives," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 177-195.

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    Keywords

    Agribusiness;

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