The big bonus dilemma
Britain’s high earners are among the “least deserving”, a new research has found.
The survey, carried out by the Chartered Institute of Management Accountants (CIMA), found more than 35 per cent of UK finance professionals claim the bonuses awarded to the top earners in their companies are undeserved.
Also, a total of 62 per cent felt unjustified bonuses led to disputes in offices.
The situation is worse in UAE where 42 per cent felt industry chiefs’ bonuses were unjustified.
Professor Wim A Van de Stede, CIMA Professor of Accounting and Financial Management, argued that bonus systems affect performance.
“These findings reaffirm some well-known issues of incentives related to a narrow focus on what is rewarded and other myopic behaviours,” he said.
“They also suggest that perceptions of ‘unjustified’ bonuses, whether stemming from ineffective incentive designs or not, can trigger resentment and undermine employee engagement and motivation.”