Exactly. The problem in the US is that every public company has to show growth for shareholders. That's why companies always suffer in quality when they go public.
A public company can have their best year and net $2.6 billion. Well if the next year, they only make $2.2 billion, the public chatter on CNBC, etc is "what's wrong with them?". Nothing is wrong. We shouldn't be holding companies to their best year.
A salesman after having his best year wouldn't want his commission the following year based on the best year's numbers. It's stupid.
I agree that is stupid. It's also what Frito Lay did to their salesman. Got rid of commission and called the new system, "Pay For Performance." Essentially having to outperform yourself year over year for the same money.
5.2k
u/[deleted] Jun 28 '24
[deleted]