Most incentive plans fail to drive true value creation—they reward mediocrity, encourage short-term thinking, and reward sandbagging and gaming of the system. In the fourth instalment of a LinkedIn Live series, Fortuna partners Greg Milano and Marwan Karame share a better incentive compensation design using a modern take on economic profit: Residual Cash Earnings. We cover why traditional bonus plans fall short, the key traits of an ownership culture, and how true value-based incentives align management’s interests with those of long-term investors. We also feature real-world examples and simulations that demonstrate why this approach is so effective at creating an ownership culture at large public companies.