In other words, delayed compensation attenuated the positive effects of the high-powered incentives.

FORBES: The Problem With Incentives

Meanwhile, the promise of high-powered incentives increased the detection of bad applications by 11 percent, thus boosting the profits per originated loans by 3 percent.

FORBES: The Problem With Incentives

While those findings suggest that high-powered incentives are more effective than origination bonuses, there are drawbacks inherent in the delayed nature of performance-based bonuses, the researchers discovered.

FORBES: The Problem With Incentives