This case describes the compensation and performance evaluations in an investment management company. The senior management team of Massachusetts Financial Services (MFS) Investment Management was considering the introduction of hedge funds at the company, but many believed that the typical hedge fund managers pay (20% of the top) would MFS cultural harm that glorifies “star performance, but not star ego. “the case, the MFS compensation philosophy and plan (including the plan focus … Read More»

This case describes the compensation and performance evaluations in an investment management company. The senior management team of Massachusetts Financial Services (MFS) Investment Management was considering the introduction of hedge funds at the company, but many believed that the typical hedge fund managers pay (20% of the top) would MFS cultural harm that glorifies “star performance, but not star ego. “the case, the MFS compensation philosophy and plan (including the plan focus on subjective compensation), the types of people attracted to the resulting culture, and how the senior management team approached the hedge fund issue. It includes side discussion about firm-specific human capital.
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from
Brian J. Hall,
Jonathan P. Lim
Source: HBS Premier Case Collection
26 pages.
Publication Date: Jan 17, 2002. Prod #: 902132-PDF-ENG
Massachusetts Financial Services HBR case solution