A disgusted reader recently sent me this link regarding yet another textbook example of corpo scam artistry: “Bwin.party proposes new bonus plan for top execs as share price languishes“. Since the board of directors at a borg is usually a hand picked crew of yes-men by the “senior leadership team“, the article headline should probably read: “Bwin.party executives propose new bonus plan for themselves as share price languishes.”
When pay for performance under the current set of “KPI“s (Key Performance Indicators) stops the money from flowing into the pockets of the head shed aristocracy, the answer is always the same no-brainer. Simply get your board-of-derelicts to lower the bar and champion a new set of bogus KPIs to the powerless and fragmented shareholdership. Ka-ching!
With the old bonus benchmarks now akin to launching manned space flights to Alpha Centauri, Bwin.party is proposing a new scheme that more accurately reflects the company’s lowered expectations. Under this plan, CEO Norbert Teufelberger would pick up a maximum bonus of 550% of his annual base salary of £500k, while chief financial officer Martin Weigold would receive 435% of his £446k annual pay packet. – Steven Stradbrooke
When borgs perform brazen acts of inequity like Bwin.party (“party” is literally true for the execs), the rationalizations they spew to the public are mostly hilarious repetitions recycled from the past:
- Bwin.party says the paydays are necessary because the US market is beginning to open up, and the hordes of US gaming companies looking to move online lack senior management with online know-how.
- The potential for US companies to poach senior execs from experienced European companies represents “the single biggest threat to Bwin.party’s ability to retain its senior management.”
- Bwin.party also suggests its top execs deserve danger pay due to “aggressive enforcement of national laws against senior executives within the industry.”
Danger pay? Bwaaahahhah and WTF! That excuse certainly wasn’t dug up from the past. Ya gotta give the clever board-of-derelicts bonus points for such creative genius: “If ya break the law and damage the company, don’t worry. We’ve got ya covered.” Why not go one step further and give Bwin.party’s employees hazard pay for having to work under such a cast of potentially criminal bozeltines?
To determine if executive compensation has any correlation to company performance, BD00 performed 30 seconds worth of intensive research and plotted the results of his arduous effort for your viewing pleasure:
So, whadya think? Is executive compensation tied to performance over the long haul? Regardless of how you answer the question, ya gotta love capitalism because after all is said, it’s the worst “ism” except for all the other “isms“.
Take a guess at which CEO recently made all these inspirational statements:
- “Overall I am very pleased with the progress we have made, but we still have a lot of work to do to drive consistent execution and navigate a rapidly shifting marketplace.”
- “We saw improved sales in our mainstream XXXXX business, but we need to improve our pricing discipline and profitability,”
- “We saw improved sales execution, a strong hyper-scale quarter, and stabilization in XXXXX complimented by revenue growth in YYYYYYY”
- “We improved our share position in all three regions”
- “We continue to manage the end-to-end cost structure of our XXXXX business with profitability very much in mind.”
- “Looking forward we will stay committed to smart capital allocation and profitable growth.”
- “As we said at our security analyst meeting last month, we believe we can grow both margin and share over the longer term. We’ll continue to be aggressive in targeted cases, but we have more opportunity to improve our profitability”
If you’re expecting an answer from BD00, then fuggedaboud it. You can pick any CEO because the vast majority of C-execs speak in this same tongue. But ya know what? Despite the standard BD00 sarcasm oozing from this post, the “system” demands that somebody do it; and I’m thankful that those who do it, do do it. I wouldn’t want to do it. In addition to not fitting into the physical and psychological profiles required by the C-level community, it’s not my cup of tea.
Vineet Nayar (HCL Technologies), Jim Goodnight (SAS Institute), Ricardo Semler (Semco), Terri Kelly (W. L. Gore), Tony Hsieh (Zappos.com), and John Mackey (Whole Foods Market). I try to follow and listen to what these CEOs say because they’re different, refreshing, authentic, and most importantly, eminently tweetable.
I’m happy to announce that I’ve just added Red Hat’s Jim Whitehurst to my CEO “watch and learn” list:
The quotes were plucked from “Management Tips From Red Hat’s Crazy Culture Every Company Should Steal”.