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Small Business Think Tank [This Network is not currently active and cannot accept new posts] | | Topics
AIG OutrageViews: 157
Apr 06, 2009 1:03 am re: re: re: AIG Outrage

Lindy Asimus
One of the things that concerned me about the AIG bonuses is the total lack of information as to who and why the bonuses are being paid.
What if a recipient has, despite the financial crisis, gone well past the expected and done a superb job?
Should this person be denied his performance bonus? It IS possible for a company to be losing money while some departments are exceeding targets.

One of the factors leading to this current situation, is the the setting up of the KPIs on what is measured as "success". Short term with no eye on the long term implications.

Meeting targets is great. Meeting targets that are the wrong targets for the health of the company? Not so much. Meeting targets that puts the industry at peril? Not so much.

If you look at this in an entirely different example, say sale in a business, it seems obvious that selling more of something is going to be only a good thing.

In fact, if the goods are priced without respect to the costs and overheads and such, the more good sold, can be (and has been in some cases) the cause for business to go under. Understanding how to price is imperative to getting a good outcome. For some businesses, selling more - bigger success - can be the road to their demise.

Surely someone is responsible for the culture and the results that the standards set within a company generate. This should, perhaps, be the basis on which bonuses are paid, and previous bonuses paid back. Hard to kick the staff who have done as instructed. Those issuing the instructions have the status and with that goes the 'reward'.

For the staff, in the position that they are doing something to achieve targets, which they know to be illegal, unethical or somewhere in between, it is time perhaps to have the discussion within the community about what is ethical, and appropriate behaviour, and that is less likely to happen when people are in bondage to the fear they have of losing their job for speaking up. This is another area that I do believe needs to change before the system gets healthy again.



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