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The Incentives Lab
HBT-INC-0042 · Dimension INC · Incentives

Bonus Structure Gameability

Narrowly tied bonuses get gamed; people optimize the metric, not the underlying goal.

Corporate Perverse Pattern·Perverse Incentive·Grade C·draft· enriching…

Scientific Definition

Narrowly tied bonuses get gamed; people optimize the metric, not the underlying goal.

Plain-English Definition

Narrowly tied bonuses get gamed; people optimize the metric, not the underlying goal.

Feynman Explanation

Pay for the indicator, get the indicator. And nothing else.

Core Principle

Narrowly tied bonuses get gamed; people optimize the metric, not the underlying goal.

Mechanisms

Psychological

Pending editorial review.

Behavioral Economic

Narrowly tied bonuses get gamed; people optimize the metric, not the underlying goal.

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Comp narrowness predicts gaming.

Computational

Pending editorial review.

Systems

Pending editorial review.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

Pay for the indicator, get the indicator. And nothing else.

Examples

Everyday
  • Sandbagged sales, padded quarterly closes.
Modern (Organizational)
  • Comp narrowness predicts gaming.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • Composite, lagged, peer-relative comp.

Measurement Approaches

Pending editorial review.

Evidence

Evidence Grade
C (A strongest → E speculative)
Replication
★★★☆☆
Intervention Confidence
4 / 5
Consensus
Pending editorial review (HBT v1.0 auto-seed).
Limitations
Pending editorial review (HBT v1.0 auto-seed).
Open Research Questions

Pending editorial review.

Primary References

Pending editorial review.

Signature Section

The Perverse Incentive Lens™

How this behavior is exploited — and how to redesign around it.

Exploitation
Comp narrowness predicts gaming.
Amplifying Incentives
Comp narrowness predicts gaming.
Org Failure Modes
Comp narrowness predicts gaming.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
Composite, lagged, peer-relative comp.
Diagnostic Questions
  • Composite, lagged, peer-relative comp.
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
Composite, lagged, peer-relative comp.
Team
Pending editorial review (HBT v1.0 auto-seed).
Organization
Pending editorial review (HBT v1.0 auto-seed).
Policy
Pending editorial review (HBT v1.0 auto-seed).
AI Implications
Detection
Pending editorial review (HBT v1.0 auto-seed).
Measurement
Pending editorial review (HBT v1.0 auto-seed).
Mitigation
Pending editorial review (HBT v1.0 auto-seed).
Responsible Use
Pending editorial review (HBT v1.0 auto-seed).

Interactive Mini Network

Click any neighbor to re-center the graph and follow the threads of connection.

HBT-INC-0042 · INC
Bonus Structure Gameability
BSAEAcquisition Earn-OutsAMAcquisition-Only Mar…ACAggressive Cost-Cutt…BHBoomerang Hire PremiumCPCEO Pay-for-Stock-Pr…EMEmpire-Building M&AFSForecast SandbaggingGAGrowth at All CostsHAHeadcount as StatusIAInnovation Award Dis…

Knowledge Graph Neighbors

Version History

v1.1.0 · 2026-06-28Initial auto-seed from corpus.