Incentive Pay is a perk sometimes offered to managers, providing they take more risks and lead their company to greater success. 

One new study suggests that Incentive Pay only works in specific circumstances, and when certain kinds of managers are involved.

For one, Incentive Pay doesn't work well when a company is already growing, though it does seem to spur people to action if a company is in decline.

Additionally, managers tend to respond to incentive pay only when they score high on tests for "Task Attention" and "Career Ambition".

In all other cases, offering extra pay for unrealized results may actually have a negative effect on a manager's productivity.

Read full article at EurekAlert.