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Nicholas Shehadie (39)
Incentive based contracts aren't that great, from a players perspective they still have mortgages and families to look after, often a guaranteed income of lower value can be better then a incentive based contract with potential greater returns due to the security that the guaranteed contract offers.

My company went down a similar path a few years ago, some people were laughing all the way to the bank at first, then incidents outside there control impacted on our customers demand and investment returns, and suddenly everyone was making cutbacks, guys had homes they couldn't keep, cars they had to sell, the whole thing was pretty messy. It saved our company $millions though, ive gone freelance and most of the older guys with families have moved on to competing companies now.

There is a fair bit of literature to suggest that incentive based contracts don't actually lead to improved performance.
 

Gnostic

Mark Ella (57)
There is a fair bit of literature to suggest that incentive based contracts don't actually lead to improved performance.

And just as much to suggest that a simple salary and fixed contract does nothing to enhance performance or protect the employer from "employees" that become relaxed and "safe" in their positions.

TOCC as for the argument that people have got THEMSELVES in financial strife after buying homes and cars etc based purely on incentive payments. Who is at fault. That is spending money you don't really have, just living beyond their means. Its not like a base Salary for a Super Player in Oz is a low paying job.
 
T

TOCC

Guest
TOCC as for the argument that people have got THEMSELVES in financial strife after buying homes and cars etc based purely on incentive payments. Who is at fault. That is spending money you don't really have, just living beyond their means. Its not like a base Salary for a Super Player in Oz is a low paying job.

thats not what i said...the point i was highlighting is that regardless of whether the value is $50'000 or $500'000 incentive based contracts which can be influenced by factors outside of a players/persons control can have very negative connotations.

Lets say for a example that a players bonus threshold is at 10 test matches in the calender year, and a player is injured after 9 matches, he could have been MOM for the previous 9 matches, alternatively the ARU could influence selection policy to avoid a player reaching his bonus threshold. In neither case is it a accurate reflection of a players performance or incentive to perform.
 

Gnostic

Mark Ella (57)
thats not what i said...the point i was highlighting is that regardless of whether the value is $50'000 or $500'000 incentive based contracts which can be influenced by factors outside of a players/persons control can have very negative connotations.

Lets say for a example that a players bonus threshold is at 10 test matches in the calender year, and a player is injured after 9 matches, he could have been MOM for the previous 9 matches, alternatively the ARU could influence selection policy to avoid a player reaching his bonus threshold. In neither case is it a accurate reflection of a players performance or incentive to perform.

You have to go back to the original post I put forward, it is all in the structure of the contract. Without going into detail the KPIs the players have to meet need not be selection in match day teams etc to meet basic incentive payments. The higher the KPI met the greater the payment that could be received.

Nobody would guess from my posting history but I am rather paranoid and distrusting of authority :) so your concern that the incentives could be withheld by conspiracy to save money doesn't strike me as out of the realms of possibility. Hence it again comes back to the structure of the incentives and KPIs required, RUPA would need to ensure that the basic safe-guards are there, it isn't that hard.

On the far extreme you have the Bankers incetive contracts which can see them get all their incentives in 7 figure amounts even when the Bank goes broke and gets bailed out by the Government, so such things are indeed possible.
 
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