Comments on: No More Executive Bonuses!

By: Arjan’s World » LINKBLOG for Dec 2, 2009

Arjan’s World » LINKBLOG for Dec 2, 2009 — Wed, 02 Dec 2009 16:04:09 +0000

[...] No More Executive Bonuses! – John Hunter [...]

By: shaun sayers

shaun sayers — Wed, 02 Dec 2009 07:26:42 +0000

I heard Warren Buffet (pretty sure it was him) about a year ago suggesting the UK government could do worse than to take the short term pain of allowing one or two big ones to go under to provide a bit of space in the sector and also teach the others a lesson. They did not, of course, follow this line and bailed them all out. Consequently, whereas previously the financial sector always suspected they’d be bailed out if they screwed up, they now know they will be bailed out. Is this “heads I win, tails I win” situation likely to lead to more responsible behaviour? Probably not. I do agree that the term “bonus” appears to have s different meaning and context in this sector too

By: BCC

BCC — Tue, 01 Dec 2009 23:09:47 +0000

Here, here.

Though I think it would be reasonable to keep bonuses, but cap them at x times salary, where x < 1 or so. Keep it interesting, but not too interesting.

By: Dan Markovitz

Dan Markovitz — Tue, 01 Dec 2009 18:25:34 +0000

John, you beat me to the punch! I just wrote a piece on this article for Evolving Excellence that will run in a day or two. I link to a few of your posts on the topic as well.

By: Tim McMahon

Tim McMahon — Tue, 01 Dec 2009 12:50:56 +0000

I thought a bonus was a reward for good results or performance. These systems need to stress long term performance and not motivate short term gains. Don’t reward failure. Maybe that is someone not worth the pay.

I do believe in the capitalistic free market society where we can reward great results. I just don’t understand rewarding failure.