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At one company I worked at only one thing mattered: the yearly bonus

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Re: At one company I worked at only one thing mattered: the yearly bonus

#3
Hedge funds are an example of the bonus impact because most pay out the majority of their employees TC via bonuses and from what I've read tends to lead to a high stress work environment. I can understand how bonuses could be intended to be for incentives to deliver work and perhaps as golden handcuffs (RSU bonuses that require a couple of years to vest etc), but yeah there's pitfalls etc.

Re: At one company I worked at only one thing mattered: the yearly bonus

#7
The smartest piece of advice I ever got on bonuses: they are part of your salary that your employer reserves the right to discretionarily not pay you. I consider bonuses of absolutely no account in a comp package. If they are given, I happily accept. If not, I have no disappointment. I give the company my diligent efforts because I care about my responsibilities and my colleagues regardless. A carrot on a treadmill isn't going to change that.

Re: At one company I worked at only one thing mattered: the yearly bonus

#9

But the bonus is just an incentive mechanism. The question really is what things influenced the bonus award? Sensible things or not so sensible things? Did they tie the bonus to things that the company wanted or not?

No matter which measures you choose, as soon as you tie financial incentives to them, people will find ways to pervert what they're supposed to measure. That observation is so general that there's even a name for it: https://en.wikipedia.org/wiki/Goodhart%27s_law
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