Friday, March 20, 2009

"Bonus"

It funny the way American media and the politicians are shouting over the AIG executives being paid the bonus.

There are some who want the bonus to be either returned or capped for "xyz complicated reasons."

Then there are those who are fighting that it should be paid if not, "we should consider it, the end of capitalism. And that without 'bonus' senior management will not feel motivated to work and show performance. Therefore, the company (AIG) should pay them (the management) bonus and kick them out."

I checked up on answer.com for its meaning and their business dictionary said -

1. Compensation paid to an employee or employees for achieving a particular sales goal or organizational objective. This is above and beyond either a Commission or a Salary. A corporation achieving a 10% increase in profits may distribute part of the earnings as a bonus to its employees.

2. An unexpected benefit occurring as the result of making a particular action.

That sounds simple. Doesn't it? Maybe the simple reason for not paying the business is for failing to make any profit. So why not just state the simple reason rather than fuming and writing 1000 of words when you can finish it in less than 200.

And if some are still advocating that it (bonus) should be paid then just ask them, why? And, how do they define 'Bonus'? Also which private company pays bonus for failing?

I think these questions will be enough to get the desired results.

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