There’s been a lot of uproar in the media about the extent of the bonuses the executives of large corporates are getting.
My view on this is that if the executive made a significant change to the bottom line of a company, he deserves a percentage. But…
I don’t agree with the way it is measured!
All companies measure the performance based on a year on year change, with dire consequences in the long term sometimes.
The way I would do it is to agree on a percentage, but base it on a long term strategy. The executive only gets the bonus 5 or 10 years down the line if the changes that were made panned out to be sustainable, and not to the detriment of other facets of the corporation.
What say you?