Bonuses have gotten a bad name lately. Disclosure in March that executives at failed insurance giant AIG accepted $218 million in bonuses after the government took over the company caused howls of outrage on Capitol Hill and across the country.
With employers nationwide struggling to avoid layoffs and pay the bills, most workers won’t have to wrestle with whether they should return bonuses, as some AIG execs did. They don’t have bonuses to give back.
In fact, companies have been scaling back variable compensation programs for months now.
Half of all employers surveyed by Towers Perrin in March said they were cutting back on bonuses and incentive rewards of all kinds. That’s twice as many as the firm’s researchers found in December 2008.
“The recession has shone a light on executive pay [in particular], causing many companies to re-evaluate the long-term implications of their pay policies,” says Andrew Goldstein...(register to read more)
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