Abstract: Few factors are more importantfor a cooperative's success than the manager. However, structur- ing a manager's compensation package to deal with principal-agent problems is a challenge for cooperatives. Conceptually, this problem could be addressed with ex ante incentive clauses that would signal the board's preferences to the manager. Thefive case studies in this paper examine compensation and evaluation methods for managers of successful local supply and marketing cooperatives. These cases suggest a reluctance to use ex ante incentives to ensure performance 

• Review of Agricultural Economics, Vol. 19, No. 2 (Autumn - Winter, 1997), pp. 492-503
• Published by: Blackwell Publishing on behalf of Agricultural & Applied Economics Association