Incentives

Avoiding the Embarrassment of a Bad Compensation Plan

Avoiding the Embarrassment of a Bad Compensation Plan

There's a lesson in this judgment I'm about pass.

It's a lesson I learned early in my management career. It's also a lesson I learned the hard way… by not thinking... by screwing up. 

Yesterday, news broke that United CEO Scott Kirby backtracked on an unpopular plan to incentivize employees with big bonuses chosen by lottery. In the boardroom, the plan may have sounded excellent. Instead of giving everyone a paltry $300 per quarter, why not pool the money and give one lucky individual $100k in travel, cars, or other luxury items? But in the words of Frank Shirley: