Humor: Peanuts: Risk Free

Risk free rates are an illusion. Risk free is an illusion. Everything in life is 'Free Risk'.... . Don't think about Risk as 'Peanuts'... It's not, as Charlie Brown, Snoopy and Woodstock show...

Reward Wisdom

We all know the quote

'If you pay peanuts you get monkeys'

Unfortunately the opposite is also true:

"If you pay bonuses, you get donkeys"

There is nothing against an attractive yearly bonus reward, based on challenging but nevertheless realistic (long term) goals in line with a confirmed and balanced risk approach.

Excessive bonus rewards however, seduce people to inferior (selling) methods or taking unacceptable (covered) risks.

An excessive bonus reward system always poisons the company and attracts the 'wrong' people. Your company doesn't need high risk takers or 'luck seekers'. Think twice....