By linking rewards to what is observable, namely company performance, this tendency can be reduced.

Linking rewards to share price movements overcomes the latter problem, but whether it will instil a more forward-looking perspective depends on how well stock prices reflect a company's future prospects, a matter on which there is some doubt.

Incentives for key staff should be structured to reward efficient deployment of capital, linking such rewards to target shareholder returns rather than volume growth.

Alternatively, it may be done through linking rewards not to individual efforts but to organizational success and service.

In July, the company will institute a series of tests around the globe that will determine how "to link financial rewards of our agencies to increased sales revenue" at P.& G., said Gretchen Briscoe, a P.& G. spokeswoman.

Salary (also now known as fixed pay) is coming to be seen as part of a "total rewards" system which includes bonuses, incentive pay, and commissions), benefits and perquisites (or perks), and various other tools which help employers link rewards to an employee's measured performance.

I am not against linking rewards to achievement: rather the reverse.

To Mr. Hanushek, the only plausible route to successful reform is to build incentive structures that link rewards to educational outcomes.

A significant proportion of executive directors' remuneration should be structured so as to link rewards to corporate and individual performance.

Beyond patrolling, the plan foresees changes in virtually every aspect of police organization, including the recruiting, screening and training of officers and the creation of new ways to link rewards to performance.