Incentives and the Iron Rule of Nature

Munger: I've been in the top 5% of my age cohort almost all of my adult life in understanding the power of incentives. And yet I've always underestimated that power. But I get some surprises that pushes a little further my appreciation of incentive superpower. It is surprising how many people fail to recognize how performance suffers if you pay someone in advance rather than after the work has been completed. Munger and Buffett choose to make compensation decisions themselves, whereas they delegate almost all management responsibilities.