Pay for Performance 0
Simon Jenkins in The Guardian:
(snip)
The answer is simple. Performance-related pay is called salary.
This is actually sound compensation theory and good organizational psychology.
Wrapping the bulk of an employee’s or an executive’s compensation up in huge annual “performance-related” bonuses which far exceed his or her base pay encourages short-term individual greed and stupidity self-serving risk-taking and discourages considering the long-term survival and growth of the organization.
