This is a bonus blog.
I might not have written it but thought that people might think that I was letting my standards slip as I had not posted for a couple of days having been away visiting family.
So this is a bonus blog.
On Monday morning I walked my six year old grandson to school, on the way he asked me what I did.
Well I said, I don't do anything really, because I am retired.
That's what I would like to do when I grow up, he replied, be retired.
Then I could stay at home all day and build Lego.
A fine ambition I think.
But now I have to make a confession. Just to be clear I have received a bonus this year.
My bonus was paid by the Government directly to me, tax free.
My bonus this year as last, was £10.
I did nothing to earn it, it was just paid to me.
Whilst I was working I only ever received one bonus, I worked for a charity at the time and in one particular year the charity had outperformed on its business plan exceeding both financial and work targets and the board declared a thirteen month year, and all the charities employees received an extra months pay.
Of course we all rang in to declare the mistake that had been made and were all delighted when we were told that it was not a mistake.
Somehow an extra month seems fair and proportionate as a CEO it was always my hope to one day reward hardworking colleagues who were committed to their work and did it for the modest salary that the charity could afford in a similar way.
Now bonuses are all the news, exercising both the politicians and the commentariat and resulting in a veritable bonus of words generated by both.
For some reason best known to the remuneration committees, bankers and other CEO's and business people's salaries are paid on the basis of a monthly income and an annual bonus. It incentivises the captains of finance and industry, sometimes characterised as cartoon figures as in: Masters of the Universe, and means that year on year they exceed targets, which benefits all of us via the exchequer and taxes paid, it just benefits the bankers et al, a bit more.
So there are now a cadre of highly paid individuals who receive salaries in the mouthwatering reaches of the financial stratosphere, (think lottery winnings), on top of which they receive their bonus, so they win the lottery twice every year.
The CEO of RBS has been in the news and has effectively been ambushed by Ed Milliband and has decided not to accept his bonus.
Now whilst I question why anyone needs to earn £2M a year, unless its to live the life of Reilly, or should that be wryly? Nevertheless I think that Mr Milliband was wrong, if the contract said that in addition to a generous salary there was also a bonus to be paid, then it was only right to pay it if the job had been done well, which it seems it was, at least to the satisfaction of the board of RBS and the remuneration committee.
The real issue is why has this bonus culture arisen? What does it say about human nature and motivation?
In the present crisis it is essential that either we get back to earning a living in the international market place with a fairer distribution of wealth, the better capitalism argument, or we find better and fairer ways of organising our economic affairs, the mutualism or co-operation argument.
Others have written more effectively on this subject, not least in the report Prosperity Without Growth, but the political argument still revolves around getting capitalism back on track, this needs to be challenged and changed.
Otherwise, like my grandson, we might all have to plan for early retirement by stocking up with Lego.
I might not have written it but thought that people might think that I was letting my standards slip as I had not posted for a couple of days having been away visiting family.
So this is a bonus blog.
On Monday morning I walked my six year old grandson to school, on the way he asked me what I did.
Well I said, I don't do anything really, because I am retired.
That's what I would like to do when I grow up, he replied, be retired.
Then I could stay at home all day and build Lego.
A fine ambition I think.
But now I have to make a confession. Just to be clear I have received a bonus this year.
My bonus was paid by the Government directly to me, tax free.
My bonus this year as last, was £10.
I did nothing to earn it, it was just paid to me.
Whilst I was working I only ever received one bonus, I worked for a charity at the time and in one particular year the charity had outperformed on its business plan exceeding both financial and work targets and the board declared a thirteen month year, and all the charities employees received an extra months pay.
Of course we all rang in to declare the mistake that had been made and were all delighted when we were told that it was not a mistake.
Somehow an extra month seems fair and proportionate as a CEO it was always my hope to one day reward hardworking colleagues who were committed to their work and did it for the modest salary that the charity could afford in a similar way.
Now bonuses are all the news, exercising both the politicians and the commentariat and resulting in a veritable bonus of words generated by both.
For some reason best known to the remuneration committees, bankers and other CEO's and business people's salaries are paid on the basis of a monthly income and an annual bonus. It incentivises the captains of finance and industry, sometimes characterised as cartoon figures as in: Masters of the Universe, and means that year on year they exceed targets, which benefits all of us via the exchequer and taxes paid, it just benefits the bankers et al, a bit more.
So there are now a cadre of highly paid individuals who receive salaries in the mouthwatering reaches of the financial stratosphere, (think lottery winnings), on top of which they receive their bonus, so they win the lottery twice every year.
The CEO of RBS has been in the news and has effectively been ambushed by Ed Milliband and has decided not to accept his bonus.
Now whilst I question why anyone needs to earn £2M a year, unless its to live the life of Reilly, or should that be wryly? Nevertheless I think that Mr Milliband was wrong, if the contract said that in addition to a generous salary there was also a bonus to be paid, then it was only right to pay it if the job had been done well, which it seems it was, at least to the satisfaction of the board of RBS and the remuneration committee.
The real issue is why has this bonus culture arisen? What does it say about human nature and motivation?
In the present crisis it is essential that either we get back to earning a living in the international market place with a fairer distribution of wealth, the better capitalism argument, or we find better and fairer ways of organising our economic affairs, the mutualism or co-operation argument.
Others have written more effectively on this subject, not least in the report Prosperity Without Growth, but the political argument still revolves around getting capitalism back on track, this needs to be challenged and changed.
Otherwise, like my grandson, we might all have to plan for early retirement by stocking up with Lego.
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