Comments on: Northern Rock Angers Tax payers Over Bonus Scheme http://www.uk-finance-news.co.uk/northern-rock-angers-tax-payers-over-bonus-scheme/125 UK Finance News, View & Opinions Wed, 08 Jun 2011 05:04:17 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Carl Malways http://www.uk-finance-news.co.uk/northern-rock-angers-tax-payers-over-bonus-scheme/125/comment-page-1#comment-351 Carl Malways Wed, 22 Oct 2008 18:06:25 +0000 http://www.uk-finance-news.co.uk/?p=125#comment-351 I don't think we can damn bonus schemes totally. There is something to say for paying people bonuses related to performance as it encourages people to put in the extra effort and to perform above expectations. Bonuses are a useful incentive and beat an inefficient system of constantly monitoring people to see whether they are performing their jobs properly. The problem with the bonus system in some banks was that it was encouraging short-termism and too much risk. These were very poorly run bonus schemes. However this should not be used to damn all types of bonus related incentives. I don’t think we can damn bonus schemes totally. There is something to say for paying people bonuses related to performance as it encourages people to put in the extra effort and to perform above expectations. Bonuses are a useful incentive and beat an inefficient system of constantly monitoring people to see whether they are performing their jobs properly.

The problem with the bonus system in some banks was that it was encouraging short-termism and too much risk. These were very poorly run bonus schemes.

However this should not be used to damn all types of bonus related incentives.

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