All the discussion about bonuses being counterproductive rewards for performance proceeds from the assumption that bonuses are intended as a reward for performa

All the discussion about bonuses being counterproductive rewards for performance proceeds from the assumption that bonuses are intended as a reward for performance. Actually, bonuses are mostly a way for a company to be flexible in the amount paid to employees. If the company has a bad year, cutting salary will have people looking for the exits... but they might accept a smaller than usual bonus.