Saturday, March 14, 2009

Whatever happened to pay for performance?

The question is, did it really ever exist? Not really. And now I guess you really don't need to have it as part of your culture since you have 45 billion in bailout funds to pay bonuses with. These funds are supposed to be used to provide credit to the general populace. Instead let's use them to pay "guaranteed bonuses."

The money quote of the article, "A guaranteed bonus is an oxymoron -- a bonus should only be given for superior performance," said Richard Ferlauto, director of corporate governance and pension investment for the American Federation of State, County and Municipal Employees. "Particularly given the precarious situation that Citi is in, folks shouldn't be rewarded until they create additional shareholder value."

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