4 ms·
I wonder if there's a way to structure exec level employee incentives through accruing bonuses over longer periods of time, so that you get two impacts: 1. Bad
by g_p 5y ago
I wonder if there's a way to structure exec level employee incentives through accruing bonuses over longer periods of time, so that you get two impacts:
1. Bad managers who get "found out" in the longer term don't apply for the role, as they won't be getting their bonus for stripping assets into a sell-and-lease-back, as their bonus will eat itself when the company starts to spiral downwards in a year or two.
2. Those who become bad managers get seen for what they are, and can't as easily "job hop" to escape the crisis they've caused. This tarnishes their reputation, warning others, and any exec jumping early will be viewed with suspicion.
In theory you could argue for stock options or similar, but those seem to deliver the short term behaviours that cause the issues in the first place (selling tangible things to raise dividends, to raise the share price, then discover you need to borrow money as you spent it all on renting the things you used to own).