Have you noticed the efforts to diminish the compensation or banking honchos and Wall Street hotshots?

Or at least make it look that way.

Our friends at Goldman Sachs are in the forefront, which should give you lots of confidence that the effort is for real.

The bonuses are in restricted stock that has to be held at least five years, so if the stock value went down 20% the banker would receive only $8 million instead of the $10 expected—poor baby, a lousy $8 million dollars, that’s terrible! Of course, the stock goes up 20% they’ll pick up an extra two mil.

Goldman benefits because the shares don’t count as compensation until they vest, which means they don’t show as an expense and that will boost profits.

Another piece of sleight-of-hand is counting consultants and temporary workers as employees; this raises headcount and significantly lowers pay per employee making politicos and the media happy.

Does it make you happy?

Do they really think we are that stupid?

Are we?

Leadership Turn ends December 29. I hope you’ll stop over today to read Leadership Needed—By 2015. To be sure you continue to get your daily fix of Miki you should subscribe via RSS or EMAIL.

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This entry was posted on Monday, December 21st, 2009 at 1:30 am and is filed under About Business, About Leadership, Leaders Who DON'T, Leadership Skills. You can follow any responses to this entry through the RSS 2.0 feed.
Tags: consequences, corporate culture, leadership_skills, Leading Stupidities
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