The purpose of this article is to examine how different performance measures were weighted in a subjective balanced scorecard bonus plan. The authors use theory from economics and psychology to develop and test various hypotheses related to this issue. These hypotheses and test results are summarized in the table below adapted from the authors' Tables 1 & 8. The findings are based on a multiyear field study of a balanced scorecard bonus plan used in Global Financial Services (GFS), a leading international retail banking services provider. They found that subjectivity in the bonus plan allowed supervisors to include factors that were not in the scorecard, ignore measures that were in the scorecard and change the evaluation criteria from period to period. This led to complaints about favoritism in bonus awards and the balanced scorecard was eventually abandoned.

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