Home Business These People Are Insane - Or Ignorant

These People Are Insane – Or Ignorant



This just in from the New York Times:

If performance-based compensation is so problematic, what’s the alternative? One possibility is to link pay to the performance of the whole company. Profit-sharing programs, where companies give a percentage of earnings to employees, were common in the United States before the 1980s, but have mostly disappeared since.

It’s true that they have largely disappeared. To be replaced with stock awards. Which are a manner of giving a percentage or earnings to employees on a permanent basis rather than as just a one off, one year, method of doing so.

I mean seriously, these are the people who should be planning our bright new future?



  1. John Lewis have one but it disappeared this year because the company made a massive loss.
    In the UK partnerships (as distinct from the JL “Partnership”) were relatively common but they involved the partners sharing in losses as well s profits until Enron (an American company: hasn’t the NYT heard of it?) which left *all* the partners in Arthur Andersen US jointly and severally liable and there was a rush to convert into LLPs which protected the partners in just the same way as the profit-sharing schemes protect employees.

  2. Profit-sharing plans were quite common (still are via 401(k) plans but generally are less tied to company profitability) and covered all employees. Stock awards are, I suspect, much more limited to execs or high tech companies.


Please enter your comment!
Please enter your name here


in British English
expunct (ɪkˈspʌŋkt)
VERB (transitive)
1. to delete or erase; blot out; obliterate
2. to wipe out or destroy

Support Us

Recent posts

In Praise Of Benign, Even Helpful, Beneficial, Tax Competition

Richard Murphy tells us that it is not possible for there to be anything other than harmful tax competition. All such competition must, by...

If Women Working Causes Inflation Then Women Must Be Less Productive Workers Than Men

Over at Politico there is the assertion that one reason for past inflation was that women joined the workforce. If there are more people...

The Point Of Inventions Is To Be Able To Use Them, Not Sell Them

This is a common complaint about the British economy, that we can invent things but don;t then go on to make fortunes out of...

An Interesting Method Of Avoiding Tax Rises – Just Borrow

Those progressives over at American Prospect, it is possible to wonder whether they've quite got the basics of how the economy works at times. So,...

The Truth About Biden’s Tax Plan – It’s Based Upon Lies

So Richard Murphy told us how lovely the Biden corporate tax plan is over at FT Alphaville. I pointed out in the comments that...

Recent comments