4 ms·

I’m always confounded by this “banning bonuses” conversation. In any job I’ve had my bonus is an expected part of my annual compensation. If you ban bonuses, pe

I’m always confounded by this “banning bonuses” conversation. In any job I’ve had my bonus is an expected part of my annual compensation. If you ban bonuses, people will switch companies, and their new contracts will state the same comp at 100% salary. Setting a total comp threshold could make sense. Not sure if it should be related to what % of revenue comp is, though at airlines it’s very high.

jdc 7y ago
What alternative disincentive would you propose?
- formercoder 7y ago
  Setting up this system would be really tough while making it impossible to game. For every one smart person in the public sector writing laws, there are 10 smarter people trying to work their away around them to make more money.
  - jdc 7y ago
    If only there was some kind of chain of command or responsibility we could use to hold people accountable for the actions of a firm.
- basch 7y ago
  Incentivize businesses to store cash.
zdragnar 7y ago
Really? Every job I have had has bonus tied at least in some way to company performance (though I have never held a C-level job either).
- formercoder 7y ago
  There’s usually an expected range. When your bonus is 300+% of salary, getting $0 means you find a new gig.
CodeCube 7y ago
And? let them leave ... if there's another airline, that didn't take federal bailout money, then they should be able to hire that executive and give them whatever compensation they want. Clearly if they didn't take bailout money, then they have nothing to be limited by. But for the airlines that take bailout money ... well, if that executive leaves, someone else will step into their place. Who cares ... you people act as if executives are some magical breed of superhuman; they're not. Sure they might have a strong business network, but nothing the new executive can't build over time.
- deleted 7y ago
  [deleted]
onetimemanytime 7y ago
>>If you ban bonuses, people will switch companies That's what the finance geniuses did in 2008...it was a great job market. Ban bonuses or go bankrupt but no board will choose to go bankrupt so who cares about what's normal during normal times.

jdc 7y ago

What alternative disincentive would you propose?

formercoder 7y ago
Setting up this system would be really tough while making it impossible to game. For every one smart person in the public sector writing laws, there are 10 smarter people trying to work their away around them to make more money.
- jdc 7y ago
  If only there was some kind of chain of command or responsibility we could use to hold people accountable for the actions of a firm.
basch 7y ago
Incentivize businesses to store cash.

zdragnar 7y ago

Really? Every job I have had has bonus tied at least in some way to company performance (though I have never held a C-level job either).

formercoder 7y ago
There’s usually an expected range. When your bonus is 300+% of salary, getting $0 means you find a new gig.

CodeCube 7y ago

And? let them leave ... if there's another airline, that didn't take federal bailout money, then they should be able to hire that executive and give them whatever compensation they want. Clearly if they didn't take bailout money, then they have nothing to be limited by. But for the airlines that take bailout money ... well, if that executive leaves, someone else will step into their place. Who cares ... you people act as if executives are some magical breed of superhuman; they're not. Sure they might have a strong business network, but nothing the new executive can't build over time.

deleted 7y ago
[deleted]

onetimemanytime 7y ago

>>If you ban bonuses, people will switch companies That's what the finance geniuses did in 2008...it was a great job market. Ban bonuses or go bankrupt but no board will choose to go bankrupt so who cares about what's normal during normal times.