Waffles On.. The Ecconomy.
Now I am no genius business person like Riggs, hell I barely understand how I have a job. However here is my take on the AIG bonus issue. I have been against corporate bonus payouts since their inception. All across the board these have been structured wrong. Basically it seems to my simple brain that CEO type people design these bonus ideas for other CEO type people. So obviously they have no real incentive to improve the company and basically are just there to make some people rich. If they do happen to have incentives like "If company makes x dollars you get y" then this just deflects the executives attention from what they should be focusing on: building a healthy company, to how they can line their own pockets with gold. I think this ends up leading to things like cutting staff so the numbers look better so they can reach their bonus number but leaves the company with disgruntled workers and unable to keep up with demand. I also think a lot of these golden parachutes really give people incentive to do a shitty job and get a big fat check. Business appears to be stupid to me. That is all.
posted by SirFWALGMan at
7:04 AM
7 Comments:
I think the totally arbitrariness of the term is the problem.
They're always "annual" bonuses, so an executive can sacrifice the long-term health of his company in order to maximize his one-time bonus and then hit his ejector seat.
9:00 AM
I'm with you Waffles. Never understood business myself. I can't get past the fact that a business transaction can be a win/win. I always think of it as oily and someone is going to lose. Usually me. :-)
9:22 AM
If you study tax law, you will find that Clinton passed a law saying that executive compensation would be taxed at a much higher level.
Bonuses became more prominent because they were taxed less. Therefore they become a bigger part of the compensation package.
All employees pay should be based on performance. That being said, bonuses should be a bigger part of all salaries.
Now, if that was the case, most of these shmoes would be paying back money and not getting any, but lawyers get involved when being hired and they demand guarantees.
just like the shortstop who gets 8 billion, and then sucks. But still gets the 8 billion.
It's just part of the system that has been created through decades of a capitalist economy.
And you don't have a job. You are contracted. YOU should be putting in your contracts "annual bonuses".
I'll take a look and negotiate your next deal if you want me too. For a fee of course :)
9:29 AM
Go read Astin's blog and understand that there is more than your black or white approach.
I pointed to his blog today from one of mine as a bit of sanity. I also added a bit that shows people getting bonus payments that deserve them are getting thrown out in the bathwater too.
11:31 AM
You should consider hanicapped women/hookers. At least that way you don't have to attempt to satisfy a woman with your 2" of dangling fury....
12:48 PM
Now that Judd Gregg has withdrawn for Sec. of Commerce. I propose Waffles. He and the President have similar bankroll management ideas.
8:52 AM
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7:01 PM
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