A spokesperson for Yahoo! doesn’t think that Netflix’s unlimited vacation–time policy would work at her company: “We’re a grown up company with over 12,000 employees,” she says, “and you have to have some semblance of process and procedure.” As Netflix grows, will CEO Hastings and other top managers have to make adjustments in this feature of the company’s incentive plan? If so, what principles should guide them in making these adjustments? What sort of problems are they likely to encounter?