Friday, December 17, 2010

The real story behind Wall Street Boguses..er..Bonuses

Four Wharten School professors wrote an excellent op-ed in The Washington Post about how, in the eyes of MBA students at Wharton, bonuses don't necessarily produce the results that the companies paying the bonuses claim to be getting from their employees. One particularly reflective quote from a student:

"Taking unpopular positions on the prospects of an investment in opposition to a partner may have helped the fund avoid poor investments, but this behavior would likely result in a lower annual bonus," one student wrote. "As such, I felt incentivized to agree with my superiors rather than make good investments."

Food for thought...

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