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There's an incentive problem, though. You can't make the people wait on you paying them until after the resolution, or they have the same insecurity. But you
by rincebrain 3y ago
There's an incentive problem, though.
You can't make the people wait on you paying them until after the resolution, or they have the same insecurity.
But you can't pay everyone that much in damages upfront, probably.
So you may give them a larger payout later, but a fixed payout now so they don't think it's purely a lottery roll, but then what happens if the case is over and you said no _and_ they're blackballed? Do you use them being unhireable elsewhere as evidence of it? And then, if they switch industries because it's more reliable to get a job in another industry, does that serve as evidence they're not blackballed and you should stop paying them?
So you'd probably want to make it some nontrivial percentage tied to the company's pre-tax+expenses income, but then you'd need to worry about them playing games with where the money goes, and also the gov't incentive to then seize huge piles of money.
The tempting answer feels like "kill the company" amounts of money, but in a lot of cases, putting the entire company out of work would be extremely disruptive to the region, and then you'd have other workers resenting anyone who reported it.
- nothercastle 3y agoYou could pierce the corporate lability shield and make that money come out of the personal income of the owners that would make it sting. Or a ratcheting system of fines where 1 is no big deal but if you catch 3 you are out. Designing reasonable incentive structures is a really hard job though most people are incapable of thinking through all the loopholes