A Bonus ? For What ?

One of the reasons for the "Occupy Wall Street " crowds is disgust that failed financial institutions which were bailed out with public money have started to again lavish obscenely rich bonuses on their executive staff.   Wall street is a long way away - and in another country - but this bonus enigma is now rearing it's ugly head right here in Wollongong.

Next month BlueScope Steel will hold it's AGM and on the agenda is a proposal to bestow $ 3 million in executive bonuses.

This at a time when the company has announced a one billion dollar loss, a retreat from the export business - the retrenchment of a thousand production jobs - and the cancellation of any shareholder dividends.

The question could be asked :   " a bonus - for what ? "

The company will probably claim that the heroic efforts of it's executives saved it from an even greater disaster.   The money is needed to prevent these valuable people being poached by other companies, leaving BlueScope bereft of the brains it needs to climb out of this financial hole.

That seems to suggest that these executives are seriously underpaid  - and that is a scenario that few would believe.   We seem to be going through a period where executive salaries are widening disproportionally in relation to average earnings - and that is what is causing social unrest across world markets.

We are not seeing disgruntled people occupying public space in Wollongong but these movements have a habit of growing - and getting out of hand - and the sort of madness that is proposed for BlueScope's AGM can be the trigger.

It's time to get back to reality - and remember the original reason for giving a bonus.    That was a reward for a person whose singular effort resulted in market expansion and profit  -   delivering company advancement that benefited both staff and shareholders.

A criteria that does not apply to the present circumstances !