Martin Conyon

Senior Fellow
Center for Human Resources
The Wharton School
University of Pennsylvania
Philadelphia, PA 19194-6358

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: University of Pennsylvania

NBER Working Papers and Publications

July 2016What Do Performance Appraisals Do?
with Peter Cappelli: w22400
This paper investigates employee performance appraisals using data from a single US firm between 2001 and 2007. We find that performance appraisals are both informative and drive important components of the employment contract. We find that employee appraisal scores vary considerably both between and within individuals over time. In addition, we show that employee performance appraisal scores are related to a range of important employment outcomes, including merit pay and bonuses, promotions, demotions and dismissals, as well as employee quits.

Published: Peter Cappelli & Martin J. Conyon, 2018. "What Do Performance Appraisals Do?," ILR Review, vol 71(1), pages 88-116.

February 2011Stock Option Exercise and Gift Exchange Relationships: Evidence for a Large US Company
with Peter Cappelli: w16814
We investigate gift exchange relationships in real jobs, making use of a field quasi-experiment associated with the exercise of stock options for roughly 4500 managers in a large public company. In this company, option grants are set equally for all employees within occupational categories, and financial markets set the price at which the options are ultimately exercised. We assert that the considerable variation that we observe across employees and over time in profits from those sales is beyond the control of the individual employee and can be thought of as effectively randomized. We also assert that employees perceive the profit they receive from exercising these options at least in part as the equivalent of a gift: Higher profits in turn cause them to reciprocate with better job perfo...
June 2004Shared Modes of Compensation and Firm Performance U.K. Evidence
with Richard B. Freeman
in Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980-2000, David Card, Richard Blundell and Richard B. Freeman, editors
August 2001Shared Modes of Compensation and Firm Performance: UK Evidence
with Richard B. Freeman: w8448
This paper examines the use and consequences of shared compensation plans (profit sharing, profit related pay, SAYE schemes and company stock option plans) in a sample of UK workplaces and firms in the 1990s. The use of these plans has increased over time, in part in response to government programs. The evidence shows that companies and workplaces adopting shared compensation practices have had higher productivity than other firms, but the effects vary among programs, suggesting that the particulars matter a lot in aligning shared compensation and work place activities. Consistent with incentive theory, the evidence also shows that firms and workplaces with shared compensation practices have a higher incidence of shared decision-making / information sharing practices.
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