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Bonus is great to spur improved productivity but it should not be for all workers- only for chief executives

Thursday, 14 June 2012
Swedish companies continue to roll out bonus program which on the first look at things it is great for it would spur economic vitality and productivity. But there is a problem the bonus programs are increasingly aimed only at managers and top executives.

In the USA for example after destroying the economy, the Republican Party is now accusing Barack Obama for stifling the economic growth and job creation in their economy. They say that Obama has passed regulations that affect job creators. Do you know who the job creators are? Billionaires and millionaires - whom the Republicans want their wealth to continue to balloon while the middle class remain seriously squeezed. And the public will quickly buy it and before they realise the same old story that took us down returns.

In Sweden, things have really changed in the direction of the American republican thinking as expressed above because a survey conducted by the accounting firm KPMG shows that 30 percent of listed companies have proposed a new program at this year's meetings.

Last year's corresponding statistics were 32 percent. The financial crisis has not frightened companies and those CEOs that operated this way don’t care and just want to line their pockets.

Among the common programs, share award programmes are the most common form of incentive, followed by warrants and stock options.
Equity programs was in the last five years, the more common one while stock options have lost ground, writes  Swedish business daily Dagens Industri.
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