Pay mix
Pay mix is the proportion of pay that is fixed versus variable. Basing too much pay on meeting certain performance measures can undermine organizational effectiveness. The bulk of many investment bankers’ total pay used to be an annual bonus linked to performance, which led many to take outsize risks trying to hit a home run. This taking led to serious problems foe many big banks, which have now shifted away from the large bonus toward base salary and long-term incentives.