This Focused Performance Weblog is a "business management blog" containing links and commentary related primarily to organizational effectiveness with a "Theory of Constraints" perspective. TOC is noted for its applications in Project Management and Multi-Project Management (Critical Chain) and Operations Management (Drum-Buffer-Rope), as well as in Marketing, Strategic Planning and Change Management (TOC Thinking Processes). If you are on an archive page, current postings are found here.
Monday, January 01, 2007
Give Someone Else a Chance -- Here's a thought, insane and idealistic, triggered partially by the recent headlines associated with compensation and bonuses...
If $1,000,000 per year can pretty much cover anyone's needs (not to mention a fair amount of more than reasonable wants), and if even the most prudent, conservative investing should be able to produce 5% per year, then as soon as a hired hand (CEO, not business owner, for example) goes through their first year of $45,000,000 of income (to allow for netting $30,000,000 after taxes, which would then also allow after tax $1,000,000 investment income), s/he has to step aside, retire from that position, and give someone else a shot.
To be fair, s/he would be free to pursue another position and use their skills (if they really do exist - I'm one who believes that the "skills" of most headliner executives are 40% luck and 50% the skills of those under them) to improve the success of another organization, allow the amassing of more personal fortune, but only until the year of another $20,000,000 net.
Truly effective managers would be compensated well, if they wished, by switching horses. If rationality ever kicked in, and they felt they had enough to survive, being forced out every once in a while would give them an opportunity to think about the possibility of doing more with their skills other than just running up the score in terms of dollars.
If they choose to take on a valid philanthropic position, pro bono, their investment income becomes tax-free, thus encouraging the minds that succeeded in the commercial world to apply their skills for the greater good.
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