{"id":2151,"date":"2010-01-25T06:00:03","date_gmt":"2010-01-25T14:00:03","guid":{"rendered":"http:\/\/hodakvalue.com\/blog\/?p=2151"},"modified":"2010-01-25T06:34:34","modified_gmt":"2010-01-25T14:34:34","slug":"bonus-is-poison","status":"publish","type":"post","link":"http:\/\/hodakvalue.com\/blog\/bonus-is-poison\/","title":{"rendered":"“Bonus is poison”"},"content":{"rendered":"

So, you offered your investment managers an extra 50 cents for every $1,000 they make you as an incentive to better performance, i.e., more money for you.\u00a0 Then you got the best performing investment management<\/a> in the whole industry.\u00a0 They earned you an extra $6,000, for which they are entitled to a bonus of $3.\u00a0 So, now you:<\/p>\n

A)\u00a0 Increase the incentive to 60 cents–maybe the extra incentive will motivate even better performance going forward;<\/p>\n

B)\u00a0 Pat your managers on the back, and keep the existing incentive in place.\u00a0 No need to get greedy;<\/p>\n

C)\u00a0 Ridicule your management for being paid a BONUS<\/strong><\/span>, calling it “unconscionable<\/a>,” try to take away what they earned, and cancel the whole incentive program, and their cost-of-living increases to boot.<\/p>\n

The state of Missouri chose C<\/a>.<\/p>\n

The title of this post is attributed to Gary Findlay, head of the investment management team that had performed so well, only to be berated for it by his ignorant, spineless bosses.<\/p>\n

Addendum<\/strong>:\u00a0 My wife considered the last comment unusually harsh for a sober blog.\u00a0 I am willing to admit that I overstated my critique of Findlay’s bosses.\u00a0 He has at least one who is not ignorant or spineless.<\/p>\n

“By any objective standard, MOSERS is the best fund in the country,” said Senator Jason Crowell, a Cape Girardeau Republican who cast the lone dissenting board vote, according to the AP. He said the board should not change its policy based on “newspaper articles and political speeches,” and said taxpayers could ultimately lose money if the system’s rate of return fell because talented staffers left.<\/em><\/p><\/blockquote>\n

Thanks, Sen. Crowell, for standing up for reason against the thankless mob.<\/p>\n","protected":false},"excerpt":{"rendered":"

So, you offered your investment managers an extra 50 cents for every $1,000 they make you as an incentive to better performance, i.e., more money for you.\u00a0 Then you got the best performing investment management in the whole industry.\u00a0 They earned you an extra $6,000, for which they are entitled to a bonus of $3.\u00a0 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20,21,14],"tags":[],"class_list":["post-2151","post","type-post","status-publish","format-standard","hentry","category-irrationality","category-politics","category-scandal"],"_links":{"self":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts\/2151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/comments?post=2151"}],"version-history":[{"count":16,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts\/2151\/revisions"}],"predecessor-version":[{"id":2167,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts\/2151\/revisions\/2167"}],"wp:attachment":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/media?parent=2151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/categories?post=2151"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/tags?post=2151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}