Pardon
me for calling them Hongkies, but it is done with no bad intention just like I
called myself Sinkie. The Hong Kong govt is not going to let the top management
of companies or organizations to get away with mismanagement and irresponsible
conduct. They are going to make the senior management of Hong Kong’s MTR to suffer pay cuts
for serious service disruptions. This is real business.
The
western practice is for top management to share big bonuses when a company
makes good profit but nothing happens to the pay of top management if the
company flops. At the worst, they will not get their big bonuses but still some
bonuses. It is either 6 months or 24
months! The top management cannot lose or be held responsible for
mismanagement. And if they are caught for major failures like the big banks,
the banks will pay the fine on behalf of the top management. And the top
management can continue to indulge in illegal or criminal activities with
impunity. Making losses or mismanagement is a non issue or minor issue that
would not hurt their pockets or their appointments.
That
is how good life is in the private sector for the top management, privatise
profits and socialize losses. Their compensation package is one way, how much
they will get no matter how the company performed or how they mismanaged the
companies. Familiar? Now the Hongkies are showing how the formula should be
redesigned to make top management pay for mismanagement and failures. A word of
caution. This cannot be applied in Sin City or all the top talents
will run away to other bigger and better companies paying them bigger pay
packages.
Compare
the two approaches, which is more equitable is obvious. The crooks in top
management have had it so good. They keep taking, no responsibility except how
much to take, can even violate the law, and mismanagement is nothing to worry
about.
This
kind of approach to make top management accountable with cuts in their pay is
unlikely to be put to practice here. How can?
Kopi Level - Yellow