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Oh no, now he won't be able to afford that thing. Oh wait, yes he will. It seems to me that executive compensation has become so inflated, it's lost its incent
by WalterSear 10y ago
Oh no, now he won't be able to afford that thing. Oh wait, yes he will.
It seems to me that executive compensation has become so inflated, it's lost its incentive value.
- maxxxxx 10y agoI have read studies that too much reward actually destroys the incentive. Instead of doing the work they are supposedly incentivized to do the main focus shifts on getting the reward at any cost.
- tonyedgecombe 10y agoI think I read that incentives only really work for mundane repetitive work. For anything intellectual or creative it is neutral or even negative.
- maxxxxx 10y agoMy company gives out bonuses in the range of 10%. I really appreciate that but it's not large enough for me to change my work. It probably makes me stay longer with the company. If my bonus was a multiple of my salary I would probably think more about increasing the bonus at any cost.
- brianwawok 10y agoInvestment banker then. Isn't normal bonus 2x salary? I would hate to rely so much on bonus. You can't count a mortgage payment on it. Shouldn't really count retirement on it.
- shostack 10y agoI have a relative that is an ibanker. His bonus was a little more than his base, but he's still somewhat junior (only a couple years in). He basically lives off his salary and is building up a reserve from the bonuses that he will then plan to spend in a controlled fashion. The general sentiment of that industry though seems to be "you should earn enough to not care about money, and if you don't you probably aren't good enough to deserve to be a banker."
- deleted 10y ago[deleted]
- beamatronic 10y agoEspecially when they pay it out every 6 months, which is standard practice. "Eh, I'm unhappy but I might as well stay around just another 6 months to get the next bonus. Then I'm gone."
- WalterSear 10y agoThere's that, but mostly when someone is being rewarded as much as the CEO of Apple, there's really not much they need money for, nor does a pay cut have any real material meaning.