THE BONUS CULTURE IS ALL WRONG !

Regularly one reads in the press of the payment of huge "Bonuses" or "Pay offs" or "Leaving Indemnities" to Directors or temporary "Experts" ! 

These "huge" payments are usually in cash or shares or private pension contributions.  They are "huge" because they frequently represent more than what an average worker can earn as wages during his whole working life, which underlines the "immorality" of this issue !

What is really wrong is that at an international level there is no co-ordinated attempt by Governments to regulate such payments.  Laws must be passed and the EU could help by creating an international "think tank" on this subject.

Initially bonuses were paid to reward good work performances.  This idea spread until profit sharing (but not loss sharing !) quickly became a habit.  Shareholders were not required to ratify such payments. 

Shareholders are also forgotten when Bonuses are considered.  Are bonuses ever limited when a dividend for shareholders cannot be paid ?  Do Directors accept a reduction of their salaries when there are low profits or when there are losses ? 

There is also another change which is needed.  When Directors or Experts qualify for a huge payment, should there not be condition that it is only payable 3 years later ?  Then, with hindsight, one knows why subsequent results were not quite what they were expected to be.  This could even lead to a recalculation of the "Bonus" ! 

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