There’s been a lot of fuss in the news recently about senior bankers and other high-level executives receiving bonuses, despite poor perfomances by the companies they lead. In my view, bonuses are something which every organisation should consider very carefully, as they provoke a lot of strong feelings.
When it comes to awarding bonuses to people at the levels seen in the City, in London – which can often run into hundreds of thousands of pounds, or even millions – there are two quite distinct sides to the argument, both of which seem to rest very heavily upon social differences.
For many senior business people, the bonus culture is ingrained in the history of the world they work in and is an expected part of their pay package. It has been argued that this keeps high-level workers incentivised and focused on their jobs; and stops them seeking highly-paid work in other global locations. People of this view tend to regard those who disagree as ‘anti-business’ and unrealistic.
At the other end of the spectrum, there are people who believe bonuses are always excessive and people should just work hard for their standard salaries. This is usually the opposing side quoted in debates.
However, there is a middle route, occupied by those who understand bonuses to be a reward for a job done well, rather than a perk to be taken for granted regardless of performance. I must say, I’m inclined to agree with this view. It is frustrating that both of the more extreme sides tend to look at each other rather than focusing on compromise.
