Measurement of success & bonus schemes

The current financial crisis has brought into sharp focus the system of bonuses and directors/CEO remuneration operated by financial institutions. What is true is that there was excessive risk and irresponsible lending and this led to the downfall of some of the world’s biggest banks. Certainly both sentences seem connected! Unfortunately, business leaders will continue to make the same mistakes, because of the way success is measured.
A bonus system can also drive the business down due to the boss having a personal agenda of covering up his incompetence and safeguarding his earning, which does not allow him to see the wood for the trees, at the expense of other stakeholders.


About surenraj

“Views expressed are my own”
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