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What Are Some of the Negative Effects of Increasing the Sensitivity

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What are some of the negative effects of increasing the sensitivity of managerial pay to firm performance?

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Definitions:

Insourcing

The practice of performing a business function internally rather than outsourcing it to an external provider or company.

Reverse Outsourcing

The practice where jobs or tasks are brought back in-house from an external service provider, often to regain control or reduce costs.

Nearshoring

The practice of transferring a business operation to a nearby country, often to reduce costs and improve collaboration due to geographical proximity.

Onshoring

The process of returning a business's production or services to its home country from overseas to benefit from domestic advantages.

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