Cockpit
Statements
The Obermatt Bonus Index is fair for executives
The Bonus Index approach to executive compensation is new and fair. It is
Crisis-proof - only true operating performance counts, not the economic cycle
The Obermatt Bonus Index is fairer than negotiated bonus targets because it eliminates the impact of external factors on the bonus. Indexed bonus recommendations compensate only operating performance, independent of economic cycles and other factors. This is fair, as why should management be penalized for factors out of their control?
Objective - de-coupled from share prices and budgets
Fairer than stock-based compensation models, the Bonus Index is unaffected by stock price moves, which can be driven by the irrational behaviour of opportunistic traders. The Bonus Index is also de-coupled from budgets. This is fair, as why should management be exposed to the random movements of stock markets and politically charged budget negotiations?
Deserved - outperformers deserve high bonuses also during downturns
Fairer than traditional bonus plans, executives who perform better than the competition receive high bonuses, even in a recession. This is fair, as why shouldn't outperformance in a recession be compensated with above-average bonuses?
It is fair for shareholders, too
„Last but not least“ – the Bonus Index is also fair for shareholders, and therefore better accepted in general shareholder meetings.