Not so easy in practice, let's say a company has to make a big investment (acquisition/enter a new market/new product), employees are generally more risk averse

Not so easy in practice, let's say a company has to make a big investment (acquisition/enter a new market/new product), employees are generally more risk averse and care about consistent year to year income, maybe they have an average tenure of 3-4 years. In this example, employees may not be incentivised to take bonus hits now for income 5+ years down the road, especially if bonus is a high proportion of total comp.