Bonuses Backfire by Reducing Long-term Employee Performance

Etna eruption seen from the International Space Station

New research shows that bonuses backfire on companies, even blocking common sense. A summary.

Blagojevich: Why Wilfred Brown's Ideas Still Work

“The combination of arrogance and stupidity that would prompt him to continue in these types of behaviors is just stunning,” Dr. [Kent Redfield, a professor of political science at the University of Illinois at Springfield,] said . “There’s no feedback loop or reality check.” [source]

If you haven’t been following it, Illinois Governor Rob Blagojevich (known widely…

Incentive-Based Compensation Destroys Productivity

Traffic signal at Tamil Nadu. (c) 2011 Thamizhpparithi Maari (CC BY SA 3.0)

Wall Street Online (through Yahoo!) is reporting that the stock market has had a major affect on the main compensation method in many industries: incentives. Unless the market increases substantially, with the DJI running back up towards 12 000 or 13 000, the options that were granted for the last five years are not worth what they were optioned at, according to the article.

Sure, major CEOs…

Copyright ©2002-2014 E. Forrest Christian. All Rights Reserved.