Is it naive or stupidity or something else?
I heard over the news on the IPO listing of CitySpring and how the fund managers were paid more than $60 mil in about four months on a scheme based on the stock's performance in the market. And the amount was almost double the whole years profit of the company! The payment was due to a contractual agreement and formula and perfectly transparent and aboveboard. So no hanky panky stuff. The comments I heard was that we were a young economy, can't believe that, so we are ignorant or naive or immature, and signed an open ended performance formula. Stupid is a word that was not used. Being conned was not said. So it is excusable for a first world country, with so many talents, local and foreign, to get into such an agreement. Would the CitySpring owners feel good about it? Any average middle manager will know that one cannot have an open ended formula for performance bonus, bonuses for staff or senior management. There must be a cap, a French cap will be quite appropriate, to prevent exorbitant payouts. It is so elementary and after so many years of progress, it still happened. What a joke!