Should CEOs Still Get Big Bonuses After a Bust?

Give back that bonus! That angry cry has been heard for years from governance consultants and shareholders seething at the way some chief executives grow rich as investors suffer. Usually, such shouting is futile. Bosses defend their pay or simply ignore criticism. Either way, they keep the cash, perhaps agreeing to take leaner pay packages

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Overview of Employee Incentive Pay

Employees in approximately one-third of all companies are eligible for bonuses of some kind. Bonuses are given to employees to serve the following purposes: to create incentives to reduce costs; to pay people for doing a good job; and to encourage employees to think like shareholders. Bonuses reflect employees’ level of responsibility in the organization,

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