NEWS: Dr. Henry Mintzberg makes a bold statement in his Wall Street Journal article - No More Executive Bonuses!

Published on Tue, 05/25/2010

Dr. Henry Mintzberg is known to be a straight shooter with his words, and yesterday’s Wall Street Journal article – No More Executive Bonuses! – is the latest.
In a time of endless discussion about how executive compensation should be restructured, Mintzberg puts forth his own suggestion – “Scrap the whole thing.” His article critiques not just the method through which bonuses are awarded on the executive level, but the assumptions made about the system in general that make the notion of executive compensation constructive at all. These assumptions, according to Mintzberg, include:

*A company's health is represented by its financial measures alone—even better, by just the price of its stock.

*Performance measures, whether short or long term, represent the true strength of the company.

* The CEO, with a few other senior executives, is primarily responsible for the company's performance.

Within twelve hours of the article’s publication over 100 people had already commented directly on WSJ.com, and the discussions were charged high with emotion and opinionated debate; nothing less could be expected from Mintzberg!
Take a look at the article that has the whole corporate world talking, and arguing. It's provocative and it's Mintzberg.

“As an executive, if you want a bonus, buy the stock, like everyone else.”

Read the article: http://online.wsj.com/article/SB1000142405274870329400457451122349453657...

Watch a short video of Mintzberg talking about alternatives to the executive bonus: http://online.wsj.com/video/if-not-bonuses-then-what/F8B0AA03-4387-4E6D-...

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