For a long time, although Smith JAMA helped Arthur operate and made a lot of money, Arthur never gave the other party any bonus incentive. The reason for this was to curb the seeds of greed.
"The bigger the bet, the more dividends" is the basic feature of the incentive mechanism of Wall Street, and it is also the incentive mechanism widely studied and implemented by the world financial industry.
However, it is like a seed of crisis sown by greed, which inspires a large number of companies to perish under the high-risk strategy. The pursuit of short-term income maximization, the formation of radical, adventurous, impetuous cultural atmosphere.
Of course, more often than not, as the boss or shareholders, driven by greed, blindly pursue profit maximization, and "force" or "connive" the high-risk management behavior of their executives.
However, Arthur didn''t regard the financial investment industry as his main business from the beginning. It was just his way of collecting money at the initial stage. Moreover, what Smith JAMA had done before was just a task to be completed according to the requirements of his boss, playing the role of a trader. Naturally, there was no need to give any bonus incentive.
You should know that once Arthur sets up the incentive mechanism from the beginning, it will be a disaster for Arthur himself, because if the executives can meet the prescribed financial indicators, they can get "sky high salary". Even if the company is hurt greatly in the future, it will not affect them to continue to enjoy huge wealth.
This will naturally prompt the management to adopt radical strategies, pursue short-term profits, even whitewash financial reports, exaggerate short-term profits, conceal potential risks, and even manipulate stock prices in exchange for huge salary incentives. This not only violates the prudent business philosophy that should be followed, but also goes to the opposite side, not to control risks as much as possible, but to pursue high risks in order to obtain high returns.
Although Arthur has got rid of the scope of financial Xiaobai through self-study, he still keeps in mind the old saying of the Chinese dynasty, "money and silk move people''s hearts". His feeling of gratitude is also limited by time. In the face of huge interests, this time may be shorter.
It''s not that Arthur thinks people badly, but to understand a problem, people can''t stand the test!
The relationship between Arthur and Smith JAMA is the principal and agent. Fundamentally, they have different interests, different goals and different motives.
The second is the asymmetry of responsibility. For the Agent Smith, he has the right to control the business but does not bear the responsibility for profit and loss, while Arthur, the principal, loses the right to control the business but ultimately assumes the responsibility for profit and loss.
This unequal responsibility actually weakens Arthur''s restriction on Smith and increases the risk of Smith''s decision-making mistakes. As it is not their own assets that are losing money, agents may make irresponsible decisions.
Third, information asymmetry. Due to the different internal management information of the enterprise, it is sometimes difficult for the principal to effectively supervise and restrain the agent, but the agent may cheat the principal, damage the interests of the principal and occupy the principal''s assets.
And the relationship between principal and agent is a kind of contractual relationship. Due to the uncertainty of enterprise operation and the limitation of information, there will always be loopholes in the contract between the principal and the agent, and there will always be some places to be considered and loopholes to be drilled.
So, from the beginning, Arthur gave Smith only one million pounds of start-up funds, let them operate. After a period of time and a series of operation observation and test, Arthur also decided to increase the company''s operable capital to 10 million pounds.
As for Arthur Smith''s private account, all of his money was invested in the private stock market.
The reward given to Smith this time is also private. After all, the idea of foreign exchange futures was put forward by Smith. After all, after all, he made more than 6 million yuan in operation. It is also proper to give him some bonus.
Of course, there is still some incentive mechanism for investment companies. After all, there is no incentive, and only salary can not retain talents. Therefore, after the company''s operating capital increased to 10 million pounds, Arthur and Smith explained the company''s incentive mechanism.
"The year-end bonus is based on the total amount of income each person gets in a year. At present, it will be distributed with 10% of the investment income first, and the loss will be eliminated directly!"
Hearing Arthur''s decision, Smith JAMA said with a smile, "everyone will be very happy to hear the good news. Thank you, boss."
"Ha ha, don''t be too small, after all, our company scale is still very small, but as long as we work together, I believe that the company will continue to grow, I said, I am not a stingy boss, the company will grow up in the future, now these people will become the pillar of the company."
Arthur continued to draw pancakes. In addition to the material incentives provided by economic interests, Arthur once again proposed a strong spiritual incentive, that is, power and status incentives. This can encourage the employees to be enterprising and loyal to the company, and promote the enterprise to enter the track of good development.
With the good news, the happy looking Smith JAMA left, Arthur''s mouth slightly raised, no matter how to say, for management, he is also gradually in a better situation.Roar -
just then, there was a roar of thunder outside. Arthur frowned a little. He stood up and went to the window. Looking at the cloudy London sky, he did not know when it had become dark and the sky became dark.
Go to the light switch, press the switch, dim office light up again, "didi!" Walking back to the desk, the mobile phone on the desk sounded a message prompt tone, picked up the mobile phone to read the message, the eyebrows could not help wrinkling tighter.
Without hesitation, the National Environment Agency (NEA) issued a short message for rainstorm warning and flood control warning in the territory. Without hesitation, they directly found out the number and called Corina, CEO of the coastal power plant, to inquire and instruct the disaster prevention situation of the power plant.
I can''t help it. The more assets I have, the more places I need to worry about. If anything happens, it will be a loss to him.
After receiving Corina''s confirmation that there was no problem, Arthur was relieved.
"Boss, I just have a message to tell you. On the evening of the 21st, there is a reception in London for the energy industry. I have sent you an invitation. I sincerely invite you to attend. At that time, the heads of major energy enterprises in the UK will attend
"Well, I see. Then, let''s meet and go together." Arthur said that for the first time in the energy industry party, Arthur will not refuse.
He is a newcomer in the industry. Naturally, he needs to increase his contacts in the industry through these gatherings and receptions. In particular, he urgently needs to find some investors who are interested in the power industry to sell some of his shares to cash in. At the same time, he can easily complete the equity reform of power plants and pave the way for the next IPO listing.
After hanging up Corina''s phone call, Arthur pondered for a moment. Naturally, he needed to find a female partner for himself to attend the party. After a round of thinking, if he didn''t want to cause trouble for himself, only Angela, his investment and financial consultant, was the most suitable.
Helplessly shook his head and laughed twice, holding the mobile phone, he found out Angela''s phone number and dialed it out.
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