If you want to boost people’s performance, don’t bank on bonuses
SIMPLE TRUTH. A BONUS IS GOOD FOR MONOTONOUS UNTHINKING, SIMPLE JOBS. IT WILL KEEP THE PERSON AT WORK ,LONG AFTER HE WOULD NORMALLY HAVE GIVEN UP OUT OF TOTAL BOREDOM.
IN MORE INTELECTUAL AND COMPLEX JOBS, BONUSES ENCOURAGE , SHORT-CUTS , BAD WORK PRACTICES , CORRUPTION ,DECIEPT AND UNDERMINES WORK MORAL.
ITS A VERY BAD IDEA! JUST LOOK AT THE FINANCIAL INDUSTRY FOR AN EXAMPLE OF BONUS CULTURE WORK EFFICIENCY…BIG BONUSES ATTRACT BIG CRIMINALS AND BAD WORK PRACTICES!!
BONUS culture has come under intense scrutiny since the ongoing financial crisis began in 2007. Many people have been outraged by the way some bankers and top executives seem to have been rewarded for failure. Others find the idea of multimillion-dollar bonuses morally abhorrent. Even US President Barack Obama has gone as far as to call large bonuses “obscene”.
But few have asked whether performance-related bonuses really do boost performance. The answer seems so obvious that even to ask the question can appear absurd. Indeed, despite all the fuss about them, financial incentives continue to be introduced in more and more areas, from healthcare and public services to teaching and academia.
“Economists and workplace consultants regard it as almost unquestioned dogma that people are motivated by rewards, so they don’t feel the need to test this” …”It has the status more of religious truth than scientific hypothesis”
Cash bonuses contributed to the financial crash,because traders had little motivation to ensure thier companies long term survival.
Stock-option bonues where blamed for the collapse of Enron and other corporate scandals.
“In many cases the top executives simply lied and cheated to make the stock price go up so they got huge bonuses” Edward Deci ,University of Rochester ,New York state.
Most bonus schemes are poorly designed says Malcolm Higgs of the School of Management at the University of Southhampton in the UK.
The bonus pay paradox
COMPANIES pay bonuses for all sorts of reasons. One is to link salaries to profits to help keep wage bills down in bad years. Another, of course, is to make people work harder. It is for this last reason that governments in several countries have introduced performance-related pay for many of their employees over the past 30 years.
Yet as our feature shows, paying for results doesn’t always boost performance. In fact it can make it worse.
The problem runs far deeper than the practical difficulties of measuring performance and the ill will that such schemes can create. Contrary to what economists believe, offering rewards, particularly in jobs that people do for love as well as money, can actually undermine the motivation of workers.
THE FACT THAT THESE BANKS COULD NOT WORK OUT A RESPONSIBLE WORK AND BONUS PACKAGE FOR THIER OWN EMPLOYEES THAT DID NOT BANKRUPT THIER OWN BUSINESSES , HOW WHERE THET SUPPOSED TO PRODUCE RELIABLE MORTGAGE OR BUSINESS FUNDING PACKAGES?!?!
SO ..DO WE NEED BONUS DRIVEN FINANCIAL EXECUTIVES?
THE FINANCIAL INDUSTRY CLAIMS IT WOULD COLLASPE WITHOUT THIER BONUS REWARDS! WELL ,WE SHALL SEE IF THE NETHERLANDS FINACIALLY COLLAPSES, THEY HAVE JUST SLAPPED A 100% TAX ON BANKER BONUSES ,AFTER THE DUTCH PEOPLE THREATENED TO WITHDRAW ALL THIER MONEY FROM THE BANKS!!
ING Banker Bonuses Axed By People Power: 100% Bonus Clawback Tax Passed Retroactive To 2008
After a furious row over pay packages at Amsterdam-based ING in which thousands of customers threatened to make mass withdrawals, the Netherlands is now vying for the title of Europe’s most bonus-hating country.
A growing Dutch political storm could end with a blanket ban on bonuses to financiers who work for institutions bailed out by the taxpayer.
ING customers mobilised on Twitter and other social networks to protest at bonuses paid to bosses at the bank, one of the biggest in the country. The threat of direct action raised the spectre of a partial run on ING, terrifying the Dutch establishment. Fred Polhout, union organiser at the bank, says: “People were outraged. We heard about the bloated sums being paid again in the City and in New York; but suddenly the issue exploded on our own front door”.’
COULD THE RESULTS BE ANY WORSE THAN THE FINANCIAL INDUSTRY ITSELF?! WHAT IS THIS “BONUS DRIVEN INDUSTRY” IN THE USA AND UK ACTUALLY DOING?…….DESTROYING THE NATIONS ECONOMY!!
…….AND BANKRUPT THE NATION, REMEMBER THIS WAS DURING A FINACIAL BOOM TIME!!!….WHO WHERE THESE “US/UK BANKERS” EXPECTING TO PAY THIS “NATIONAL DEBT” IN THE BUST TIME?
|Rank||Country||CAB USD, bn|
|1||People’s Republic of China||371.833|
|181||United States||-731.214 |
This is a list of countries and territories by current account balance (CAB), based on the International Monetary Fund data for 2007, obtained from the latest World Economic Outlook database (October 2008).
YOU SEE IN TODAYS GLOBAL ECONOMY THERE ARE PROFITABLE RESPONSIBLE BANKS ,ITS JUST THAT THEY ARE NOT AMERICAN OR BRITISH !!SO IF WE ARE HAPPY DRIVING GERMAN CARS ,FOR EXAMPLE, WHATS THE PROBLEM BANKING IN CHINESE BANKS? BTW CHINESE BANKERS GET LESS BONUSES!!…….AND 181st IS LAST PLACE!!
might i suggest some useful reading material for Western Bankers……..
THE ROOT OF THE PROBLEM AND SOME WOULD SAY ALL EVIL…..THE FEDERAL RESERVE ,THE DUMBEST PLACE ON EARTH!!
The board of directors of each Federal Reserve Bank District also have regulatory and supervisory responsibilities. For example, a member bank (private bank) is not permitted to give out too many loans to people who cannot pay them back. This is because too many defaults on loans will lead to a bank run.
The punishment for making false statements or reports which overvalue an asset is also stated in the U.S. Code:
Whoever knowingly makes any false statement or report, or willfully overvalues any land, property or security, for the purpose of influencing in any way…shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.
These aspects of the Federal Reserve System are the parts intended to prevent or minimize speculative asset bubbles which ultimately lead to severe market corrections. The recent bubbles and corrections in energies, grains, equity and debt products and real estate cast doubt on the efficacy of these controls.
SO WHY ARE THE BANKERS NOT FACING $1,000,000 FINES AND 30 YEARS IMPRISONMENT?!?!…LET ME GUESS ,IT HAS SOMETHING TO DO WITH CORRUPTION AND REPRESENTATIVE GOVERNMENT….YES GOVERNMENTS ARE FOR DUMMIES AS WELL.
THE FEDERAL RESERVE WAS ALSO SUPPOSED TO STABLISE THE DOLLAR…….ITS NOT BEEN VERY SUCCESSFUL….BUT WHAT DO YOU EXPECT FROM A BUNCH OF DUMMIES!!
From 1776 to 1912 (136 years), the value of the dollar, relative to the Consumer Price Index, increased by 11%. A dollar could buy 11% more goods in 1912 than in 1776.
After the Fed’s creation, from 1913 to 2008 (95 years), the value of the dollar, relative to the Consumer Price Index, decreased by 95%. A dollar could buy 95% fewer goods in 2008 than in 1913.
THE CITY BANKS AND THE BANK OF ENGLAND HAVE ACHIEVED THE SAME DISASTEROUS RESULTS FOR THE UK AND CLAIMED THE SAME HUGE PAY PACKETS AND BONUSES FOR THE PRIVILIGE
The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in inequity and born in sin . . . Bankers own the earth. Take it away from them but leave them the power to create money, and, with a flick of a pen, they will create enough money to buy it back again . . . Take this great power away from them, and all great fortunes like mine will disappear, for then this would be a better and happier world to live in. . . . But, if you want to continue to be the slaves of bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit.
– Sir Josiah Stamp, Director of the Bank of England, 1927
“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”
BONUSES AS BRIBES? SHOULD BANK BONUSES BE CAPPED AT 30 PIECES OF SILVER “OLD MONEY”?
JUST FOR OUR “BRIGHTEST AND BEST” BONUS DRIVEN FINANCIAL KINGS OF CAPITALISM…HERE IS HOW CAPITALISM IS SUPPOSED TO WORK……ITS DOES HELP IF YOU HAVE SOME CAPITAL ,AND NOT DEBT , IT IS ALSO USEFULL TO MAKE PROFIT BEFORE AWARDING A BONUS!
1.Availability of credit allows money to flow between savers and borrowers.
2.Resources and funds are allocated to various projects or investments during a boom phase.
3.Eventually borrowing becomes excessive and leads to malinvestment,
4.At this stage, adherence to free market theory would allow for an efficient cleansing period and a healthy recovery period. How? Irresponsible and unprofitable businesses fail. Bad debts get liquidated. Excess resources go on sale, flow into more stable ventures and pool together with more profitable resources controlled by healthy corporations or entities
NEWSFLASH , UK ,USA,EU BANKS FOUND TO BE UNPROFITABLE AND IRRESPONSIBLE . THEREFORE YOU GET ASSET STRIPPED AND REPLACED BY RESPONSIBLE AND PROFITABLE BUSINESS MODELS!!
NO TAXPAYER BAILOUT , BANKS GETS ASSET STRIPPED TO PAY THIER DEBTS , VENTURE CAPITALISTS GET PENNIES BACK ON THE POUND……THAT IS HOW CAPITALISM WORKS!!
SO WHAT IS THE “SMART MONEY” DOING?…….STOPPING BANKER BONUSES AND BAILOUTS ,ARRESTING CRIMINALS AND GETTING THIER MONEY BACK!!! ECUADOR ,ICELAND ,ARGENTINA SHOW US THE WAY THE GREEKS AND IRISH AND THE REST OF EUROPE WANT TO FOLLOW THEM!!!
ACTUALLY WESTERN BANKERS COMMITTED FRAUD ON A GRAND SCALE AND SHOULD BE IN JAIL AND SUED FOR DAMAGES!!!
BECAUSE THE BONUS DRIVEN BANKERS BROKE THE LAW FOR A QUICK BONUS BUCK, ECUADOR DECLARED THE DEBT ILLEGAL!! THEY ARE NOW DEBT FREE!!
In November 2008, Ecuador became the first country to undertake an examination of the legitimacy and structure of its foreign debt. An independent debt audit commissioned by the government of Ecuador documented hundreds of allegations of irregularity, illegality, and illegitimacy in contracts of debt to predatory international lenders. The loans, according to the report, violated Ecuador’s domestic laws, US Securities and Exchange Commission regulations, and general principles of international law. Ecuador’s use of legitimacy as a legal argument for defaulting set a major precedent; indeed, the formation of a debt auditing commission sets a precedent.
THE DIRECT DEMOCRACY OF ICELAND ARRESTED THIER CRIMINAL BANKERS ,THEY EVEN ARRESTED THIER PRIME MINISTER FOR TRYING TO SELL THE POPULATION AS DEBTER SLAVES!!
Icelanders are also angry that only the former PM is being charged. One commenter on the Ice News article noted, “Is this not a total betrayal of the people?” And criminal, to reasonable minds.
Icelanders condemn the injustice of large companies and their CEOs having had their debts forgiven by government, while theirs are not.
Three other officials were charged with “misconduct in the lead up to, during and following the banking crisis,” reports Ice News. Parliament voted to prosecute only Haarde for negligence,
WE SHOULD DO THE SAME!! WE SHOULD BE ASSET STRIPPING THESE BANKS TO PAY THE DEBTS ,NOT HANDING THE BILLS OF FRAUDSTERS TO THE TAXPAYER…..PRIVATE INVESTORS JUST GET PENNIES BACK ON THE POUND ,OR CENTS ON THE DOLLARS, THAT’S WHAT “VENTURE CAPITALISM” IS ALL ABOUT “RISK”!!
Over 40 billion euro in 28167 claims made aganst the Kaupthing Bank, 23 Jan 2010
This document contains a list of 28167 claims, totaling over 40 billion euro, lodged against the failed Icelandic bank Kaupthing Bank hf. The document is significant because it reveals billions in cash, bonds and other property held with Kaupthing by a vast number of investors and asset hiders, including Goldman Sachs, Deutsche Bank, Credit Suisse, Morgan Stanly, Exista, Barclays, Commerzbank AG, etc. It was confidentially made available to claimants by the Kaupthing Winding-up committee
So who are the government crooks protecting,these criminal bankers, the answer is simple; the bond holders. Roughly, 80% of this debt is foreign owned and a large portion of this is held by German and French Citizens. Bottom line this rescue package is not for Greece,or any other bailout reciepient, but it’s a rescue for Greek bond holders worldwide. If Greece were to default tomorrow, it would not disappear, but its debt holders would be seriously hurt. Thus behind all this noise one must understand that the main reason for the bailout is to protect the bondholders; the exact same story unfolded in the US, the only difference being that it was a bailout of the banking industry.
ARGENTINA DEFAULTED ON ITS DEBT IN 2001 ,ITS DOING BETTER THAN EVER TODAY
Even though Argentina defaulted on its debt, it is still around. Yes it did pay the price initially by being shut out of the global capital markets for years, but it did not vanish and only its foreign debt holders lost.
ARGENTINA’S SOLUTION DIRECT DEMOCRACY AND LIBERTARIAN IDEALS FREES THE ARGENTINE PEOPLE OF DEBT
After the non-violent collapse of the Argentinean government in 2001/2002, the social and economic organization of Argentina has undergone major changes, though how important these changes are remains to be seen. Worker occupations of factories and popular assemblies have both been seen functioning in Argentina, and both are the kind of action endorsed by anarchists: the first is a case of direct action and the latter a case of direct democracy. Approximately 200 “recovered” factories (fábricas recuperadas) are now self-managed and collectively owned by workers. In the large majority of them, pay is completely egalitarian; generally no professional managers are employed, or managers are collectively controlled in the other cases. These co-operatives have organised themselves into networks. Solidarity and support from external groups such as neighborhood assemblies and unemployed (piquetero) groups have often been important for the survival of these factories. Similar developments have taken place in Brazil and Uruguay.In 2004, Avi Lewis and Naomi Klein (author of No Logo) released the documentary The Take, which is about these events.
VENTURE CAPITALISTS SHOULD BE SUEING CRIMINAL BANKERS FOR THIER LOSSES , SERIOUS CRIMES HAVE DEFINATELY TAKEN PLACE! NOT EXPECTING THE TAXPAYER TO PAY FOR HIS STOLEN CAPITAL!!…OR ARE VENTURE CAPITALISTS DUMMIES TOO,..WHAT DO CON-MEN SAY ABOUT A FOOL AND HIS MONEY?!? IT WAS THE BONUS DRIVEN CRIMINAL BANKERS THAT STOLE YOUR INVESTMENT MONEY ….NOT THE TAXPAYERS….YOU THIEVING DUMMY!
WHILE THESE DUMMIES AND THIER BLACKMAILED AND BRIBED ENABLERS IN GOVERNMENT CONTINUE WITH THIS OBVIOUSLY FLAWED AND UNWORKABLE FINACIAL SYSTEM ,WE THE PEOPLE ,SHOULD ALL BE WITH DRAWING OUR MONEY FROM THE BANKS AND SPENDING IT ON GOLD AND SILVER AND THINGS OF REAL VALUE………….WE SHOULD ALSO BE DEMANDING TO KNOW WHO OWNS OUR MORTGAGES!!!……YOU MIGHT GET A NICE SURPRISE ,OR A NASTY SHOCK!!
IMHO THIS IS JUST THE SYSTEM REPEATING ,THIS WAS ALL A “PLANNED” FINANCIAL COUP FROM THE FINANCIAL ELITE ,THE SAME PEOPLE, USING THE SAME PLAN THAT FAILED THE LAST TIME……..NOT THE BRIGHTEST PEOPLE ON THE PLANET!…….THE REST OF THE BANKERS DOWN THE FEEDING CHAIN ARE JUST SELFISH ,GREEDY AND LAZY…..ALSO NOT THE BRIGHTEST PEOPLE ON THE PLANET!
WE HAVE BEEN HERE BEFORE , AND WE HAVE WON, PLEASE TAKE ANDREW JACKSONS ADVICE!
“Never take counsel of your fears.”
The Jacksonians opposed government granted monopolies to banks, especially the national bank, which was a central bank known as the Second Bank of the United States. Jackson fought to end the government monopoly to the Bank and got great opposition from Nicholas Biddle, the bank chairman. Biddle first dismissed Jackson efforts, but as the initiative gained popular support, he got more concerned. There was an attempt to murder Jackson at that time but the pistols failed. Jackson would later claim that he had proof the bankers were behind this attempt. Jackson was able to gain popular support because the Bank money manipulations and inflation had created a big recession, and it had inflated land prices, benefiting big land owners and stopping economical development. In a last attempt to stop Jackson, Biddle burst the bubble his inflationary policies had created, and brought about a deflationary correction. This put pressure on Jackson, but after a year of recession, the economy was clean by the deflationary correction, and the Bank was out of “ammunition”. Jackson had won the battle. The Bank continued his operations as a state bank, but had to close years after. Once retired, everytime Jackson was asked what was his biggest achievement as president he answered: “I killed the Bank”.
ANDREW JACKSON was the ONE president that CLEARED AMERICAN DEBT ,when faced with financial ruin How did he manage it?
“The Bank is trying to kill me, but I shall kill it!”
ANDREW JACKSONS VIEW OF THE BANKS….NO BAILOUT.
“You are a nest of vipers and thieves, and by the grace of the almighty God, I will root you out!”
ANDREW JACKSON’S VIEW ON CORPORATIONS
Corporations have neither bodies to kick nor souls to damn.
ANDREW JACKSONS VIEW ON THE BRIGHTEST AND THE BEST
Hemans gallows ought to be the fate of all such ambitious men who would involve their country in civil wars, and all the evils in its train that they might reign & ride on its whirlwinds & direct the Storm– The free people of these United States have spoken, and consigned these wicked demagogues to their proper doom.
BONUSES ARE FOR DUMMIES!!!