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Thread: Director's Bonuses

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    Silver Member Graeme's Avatar
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    Director's Bonuses

    Having recently spent a month in New Zealand I noticed that their media has the same spiteful attitude towards Company Director's bonuses that prevails here. It really is too bad; if a CEO of a company gets a large bonus it is of concern only to the shareholders of the company who are funding the bonus out of their dividends; it is no one else's business. As a shareholder if I receive a dividend that is 19% greater than the previous year's, I don't give a hoot if that R40 million director's bonus cost me 1% of my dividend - I participate in the giving of the bonus gladly, and wish the CEO well and hope for yet another brilliant performance from him in the future. Even if the company has sustained a loss, it could well be that the loss was due to hard times in that line of business and was held to a minimum by an outstanding performance by the CEO.

    Those who have not put up any risk capital have no right whatsoever to act at spokespersons for those who have; they should keep their envy and their spite to themselves.

    All of the above does not apply to the copy-cat bonuses paid to civil servants.
    Last edited by Dave A; 18-May-08 at 05:23 PM.

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Graeme View Post
    if a CEO of a company gets a large bonus it is of concern only to the shareholders of the company who are funding the bonus out of their dividends; it is no one else’s business.
    I don't think the unions feel the same way. They feel their worker members deserve some credit too.
    Quote Originally Posted by Graeme View Post
    All of the above does not apply to the copy-cat bonuses paid to civil servants.
    Another interesting point. The contra argument is that the civil service needs to compete with the private sector for talent and thus they must pay big bonuses. The question, perhaps, is whether this strategy is working
    The trouble with opportunity is it normally comes dressed up as work.

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    Quote Originally Posted by Dave A View Post
    I don't think the unions feel the same way. They feel their worker members deserve some credit too.
    Yes. They have helped make the profit. They should also get a share. I know the workers get bonuses sometimes but are they fair? Top management gets too much when they are paid so much more already.

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    Site Caretaker Dave A's Avatar
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    Jabu - One day you will be top management and then we will see if you feel the same way.
    The trouble with opportunity is it normally comes dressed up as work.

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    Platinum Member Chatmaster's Avatar
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    Quote Originally Posted by Jabu View Post
    Yes. They have helped make the profit. They should also get a share. I know the workers get bonuses sometimes but are they fair?
    Sorry have to completely disagree with you here Jabu. The success of any business, solely depends on its top management and their management style to keep their workers motivated enough to contribute to the companies success. Fairness depends solely on the true value such employee contributed. Very few employees really do the extra and are devoted to ensure success for the business.

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    It remains a tough one, but coming into contact with so many individuals on a daily basis my heart goes out to some of the "workers" of ZA today. A largish company has some of it's workers working until 10h00 every night, because they are fortunate enough to have a group who take tremendous pride in what they do. Some of these people are giving up their families - they were all given a R50 gift voucher just recently as a token of appreciation.

    I have a personal friend that works at Koeberg (I'm ducking now) - he puts in hours of overtime (but I think that is to avoid our merciless teasing) - zero/zip remuneration.

    There will always be those that do and those that don't. Our challenge comes in when either of the 2 groups start claiming the rights.
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    Platinum Member Chatmaster's Avatar
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    That angers me, that is bordering slavery! I remember working for an employer where it was expected of me to work almost 18 hours a day for 7 days a week. I once pushed through for 54 hours non stop when I finally collapsed on my bed. I was part of top management and therefor they didn't need to pay me any overtime however I received a bonus on a monthly basis, making it worthwhile till I had to choose between staying married to my wife or staying married to my job. Needles to say the job lost the contest.

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    In my opinion it is no. 1 simple economics - There are not many people that has the qualification or experience to run a multi national company, therefore the law of supply and demand comes into play. No. 2 is the fact that if one worker increases productivity in his or her area they have a certain impact on the business, if the CEO increases 10% productivity in his or her area of responsibility - well that is a completely different story.
    Nobody walks into a senior management position, they earn it and work hard for it.
    If you can pay Carlos Perreira and Santana what you pay them to coach a soccer team that has no income value, produces no products for the country etc. then don't ever moan about a CEO that gets a bonus !!!

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