More money for dairy producers, paid earlier in the season to ease cash flow problems are the aims behind a new incentive payment from Fonterra Australia.

The optimal incentive payment scheme contains five components:fixed-income, informational rent, risk compensation, incentive compensation and the managers'market price.

Then the paper introduces the different types of Long Incentive payment. At the end of the paper it put out the corresponding Incentive System base on the analyzing the characters of...