CEO Bonus Schemes Are Flawed …

say NO to executive bonuses

say NO to executive bonuses

… and cannot be fixed.

So says Henry Mintzberg, as quoted in a Globe and Mail item entitled “Bonus culture called destructive, beyond repair“.

Here is the actual quote from Henry’s Wall Street Journal article.

Executive bonuses—especially in the form of stock and option grants—represent the most prominent form of legal corruption that has been undermining our large corporations and bringing down the global economy. Get rid of them and we will all be better off for it.

Here is another quote I like. This one is in the Wall Street Journal article shown above.

Too many large corporations today are starved for leadership—true leadership, meaning engaged leadership embedded in concerned management. And the global economy desperately needs renewed enterprise, embedded in the belief that companies are communities. Getting rid of executive bonuses, and the gambling games that accompany them, is the place to start.

Dr. Mintzberg is a professor at the Desautels Faculty of Management at McGill University in Montreal.