Thomas Frank hits the bulls eye again.
In truth, however, the verdict has been in for years. Pay for performance systems, at least as they exist in many places, are a recipe for disaster.
What they have “incentivized” executives to do, in countless cases, is not to perform, but to game the system, to smooth the numbers, to take insane risks with other people’s money, to do whatever had to be done to ring the bell and send the dollars coursing their way into the designated bank account.
Sadly Obama does not seem to be helping much in this regard. Just recently he went on a tirade (faux rage) about off shore tax loop holes while simutanously pushing for the Panama Free Trade Agreement. Another example is those hedge funds that pushed Chrysler into bankruptsy will most likely get a bailout by Obama.
Yes, its time to move the cheese.