Four years ago, CEO Balaji Krishnamurthy devised a jaw-dropping inverted-bonus plan at Planar Systems that put himself dead last when it comes to receiving extra cash: his policy rewards rank-and-file employees first, before moving up the management chain. Since then, this maker of flat-panel displays, based in Beaverton, Ore., has been bombarded with questions from other CEOs about the bonus system, which, Krishnamurthy claims, is a better incentive for every employee to create shareholder value. "Those with a higher capacity to influence the results of the company must first ensure that those with a lower capacity are fully served before serving...
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