Incentive Structure of Microfinance Organizations in South-East Asia

This study analyses the provision of incentives within nine microfinance institutions (MFIs) located in South-East Asia (more specifically, in Cambodia, Laos, Vietnam and Malaysia). Starting with a summary of academic literature on employee incentive structures, the study then focuses on the subject of incentive structures among MFIs, and how staff incentive schemes can impact the social mission of these banks. A comparative study is made between the staff incentive schemes of nine south-east asian MFIs and their impact on their social performance is analysed, based on interviews conducted with top managers of the bank. A comparative analysis is made with commercial banks in Europe, providing further insight on how staff incentive schemes differ between organisations with a social mission and purely commercial ones.