Business: How Much Incentive?

Should U.S. industry set up a system of incentive pay for executives?

This question is as hot to the thousands of U.S. business executives as the size of the pay envelope is to U.S. workers. Last week it boiled up in Manhattan as a full-fledged corporate issue. The argument had simmered fortnight ago over the "incentive plan" which Sinclair Oil Corp. set up for its president Harry Sinclair (TIME, May 29). Twentieth Century-Fox Film Corp. came along with a similar plan to make management more attractive to its president Spyros Skouras (see above).

But it was Paramount Pictures, Inc. that set the pot...

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