performance bonuses

3-4 years conditional incentive for management with an exponential gain possible seems almost outrageous considering the world economy has fallen into a mud hole called the GFC.

people are scared,not spending as much,businesses are scared not committing to full time employment casual and part time
employmentt further erodes consumer confidence.

so the question is will the supposedly gifted skills create a turnaround in pbg ,or will a transition from the gfc lift confidence and corporate profits.

i guess 10 times the normal wage plus a success fee if targets are met including a substantial increase in shareholder returns might be reasonable as a one off payment.

the risk for shareholders seems disproportionate compared to the beneficial owners of shares under a company incentive scheme who theoretically will receive a life long benefit in the form of dividends plus an income while they strive to acheive the desired result---whats the failure fee?

some businesses have them, its called zero renumeration,and that is what shareholders get plus a loss of capital .

lets face it these schemes should face serious opposition,tax payers are also subsidising executive incentive schemes particularly when they fail to deliver.

in reality everyone hopes for upside, however given the parlous state of the worlds finances and shifting demograhics what is the real driver of consumerism---

is it confidence

is it a trend supported by brilliant product and advertising with competitive pricing.

or is it a neverending fight for survival.

one could be forgiven for wondering who the real winners are in publicly listed companys it certainly doesnt appear to be ordinary mum and dad shareholders placing their hard earnt capital in the hands of managers with an enormous wage and huge share incentive---- maybe race horses are a better investment for the outlay.

nontheless i hold pbg shares because of the strong brand recognition in the belief that should the Aus dollar slide
PBG management will be in a more competitive position to supply
products with a far more comparative competitive cost and profit base,that will recapture market share from generic or home based product which currently enjoys growth due to the tight consumer dollar well supported by the high $aus