Toward Incentives for Military Transformation

One-liner: Examines four major models of compensation and how they apply to the military's system of incentives and its goals of transformation. 450-character abstract: The military must ensure that its compensation system provides flexibility in managing personnel, induces innovatory activities and well-calculated risk-taking, and provides incentives for performance, retention, and skill acquisition. This report analyzes four models of compensation-promotion tournaments, deferred compensation, pay-for-performance mechanisms, and nonmonetary rewards-in the context of military transformation efforts.