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If you want good behavior, don't pay on a commission…

“If you want good behavior, don't pay on a commission basis. Our judges aren't paid so much a case. We keep them pretty well isolated with a fixed salary. Judges in this whole thing have come out pretty well - there have been relatively few scandals.” quote by Charlie Munger
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“If you want good behavior, don't pay on a commission basis. Our judges aren't paid so much a case. We keep them pretty well isolated with a fixed salary. Judges in this whole thing have come out pretty well - there have been relatively few scandals.”

Charlie Munger

About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Fixed salaries reduce incentives for corruption, leading to more impartial and reliable decision-making.

In simple terms: Stable pay curtails bias.

Key Takeaway

Compensation structure shapes behavior.

Themes

ethics incentives governance accountability organizational design

Mood

cautious analytical

Type

advice observation

When to use this quote

  • public sector hiring
  • corporate board compensation
  • non‑profit governance

Key Concepts

salary vs commission judicial independence corruption risk

Practical Applications

  • designing compensation policies
  • structuring judicial pay

Questions to Reflect On

  • How might fixed salaries affect performance?
  • What are the trade‑offs of commission‑based pay?
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