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View Diary: Corporate Life In The Rearview Mirror: Financial Shenanigans (20 comments)

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  •  Wish I could T&R more than once (2+ / 0-)
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    brae70, cassandracarolina

    I believe a big reason for the fudging of figures is that compensation so often is tied to results.  Pay for performance is a tricky thing to achieve, and when poorly set-up can create horrible incentives (see mortgage crisis).  

    Do you know if the study goes into that at all?

    •  Thanks, mygreekamphora (1+ / 0-)
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      Pay for performance would make sense IF it was the sort of performance that mattered to customers. When shareholders are the Gods and customers are mere mortals, this is what you get.

      The article in the Wall Street Journal doesn't provide much detail, but your hypothesis sounds exactly on target.

      Those who do not understand history are condemned to repeat it... in summer school.

      by cassandracarolina on Tue Oct 02, 2012 at 07:09:24 AM PDT

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    •  Compensation tied to results. Perhaps (2+ / 0-)

      an extreme example of this was the rewarding of football players who caused injury to an opponent.  Notice how the madia called this a "bounty" instead of an "incentive" which is of course what it is.  They don't want people to make the connection.

      "Now go out there and make me do it!" - Franklin Roosevelt

      by brae70 on Tue Oct 02, 2012 at 07:24:43 AM PDT

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