|21: PROFIT Share the wealth.|
Fairly distribute the wealth. Reward the best with a larger share of the wealth. It is not fair to reward a slacker with the same cut of the pie as a superstar. It is ok to use subjective and arbitrary measurements. It is impossible to design a fair bonus system based entirely upon quantitative measurements. Acknowledge both group and individual contributions. Never reward or incent employees with equity. Equity is the wrong metric unless it is tied directly to profitability. Annual distributions of profit are too long a time frame. Quarterly distributions are the best and allow maximum flexibility for influencing and motivating employee behavior. Keep executive and managerial bonuses respectful and commensurate with the contributions made.