I took a stab at the 'internet' version of what this means and here is the results:


Web definitions

• Performance-related pay is money paid to someone relating to how well he or she works at the workplace. Car salesmen, production line workers, for example, may be paid in this way, or through commission.

en.wikipedia.org/wiki/Performance-related_pay

• Encouraging and rewarding individual and team performance by related pay and benefits, e.g. individual and group bonuses, employee share offers, and performance-related perks.

www.emeraldinsight.com/journals.htm

• Management’s attempts to increase worker productivity by linking pay with performance.

www.tuition.com.hk/dictionary/p.htm

• refers to payment systems in which a percentage of pay depends on the assessed performance of individuals, groups or the organisation as a whole.

click here for the link

What I really struggle to understand is this:

1.  There is company law to government good governance and how companies are run.  If someone breaks those rules, companies can and more often that not, are taken to court and prosecuted if found guilty.

2.  If an individual does something to break the law, if they mis-treat, abuse or conduct fraudulent activity(ies), they more often that not,  are taken to court and prosecuted if found guilty.

So, can someone please explain to me this:

A.  A footballer can receive a monthly salary in six figures and for a whole season not score a goal or contribute positively to his team winning games / leagues.

B.  A bank can manipulate information to influence market trading and shareholder confidence without being accountable to anyone.

How is this possible?  Why not this:

If footballers were placed on minimum wage and when a team won, the goal scorer(s) would receive incentive bonuses and the rest of the team would receive contributory bonuses which would be a team percentage reflecting team effort.  If the team did not win, or the team loses then no bonuses are paid out.  If the team result is 0 / 0 then only minimum wage is paid out.

If bank management broke the rules, their bonuses throughout the period the rule breaking occurred is re-paid to the company and they are reported for fraudulent activity and prosecuted through the criminal justice system which will decide if guilty or innocent.

All bank bonuses should be scrapped at the high end.  They already receive hefty salaries.  There should, however, be a bonus payment to all front line and beneath management roles which is paid out only to that level everytime management make errors.  I am sure Bank management teams would then think twice about their actions.  I am also sure they would take far less unreasonable risks!

I don't know about you, but I have had enough of companies going that extra mile to squeeze every penny they can out of me.  I have noticed, on most services I sign up to, insurance, membership organisations etc., I receive their contact details via a 08700 or 0844 number.

These numbers carry premium rate calls, i.e. they will cost more money to call than standard charges.  Additionally, they more often than not will not be included in any free calls or low usage packages you have with your phone provider.  These people are making money on our phone calls!  So, on my insurance policy, if I wish to make a change or make a claim we all know these calls are managed on automated systems which keep you holding on for so long, most people automatically switch the phone to speaker, put it down and carry on with other things until the call is answered.  Now think about it, how long are you kept waiting and how much is this really costing you?  Just know, you are being charged out at least 8p per minute for this, I said at least, some charge more than that and some companies get a cut for this service.