No Bonuses

As a publicly listed company, we posted our full financial year results earlier this week. The news is not good – at least for employees hoping for a bonus. The overall result matched market perceptions (despite including some massive write downs) coupled with a larger than expected dividend. The thing is, the result was below any trigger for employee bonuses.
There are a couple of points to infer here:
(1) The company couldn’t find better uses for the masses of cash that the company generates;
(2) The dividend was perhaps a tradeoff between shareholders and employees.
In the end, a corporate board has to respond to the market. They have to continually show that the company is growing – providing guidance every six months. So, even if the plans formulated are lousy, the numbers revealed to the market have to be good. In our case, people have worked hard but their efforts haven’t delivered the results, so no bonuses. Bummer.


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