Cockpit
Statements
Obermatt Bonus Index
The Obermatt Bonus Index ranks recommended levels of executive bonus payments as provided by a neutral third party (more on the Declaration of Independence).
The higher the ranking of the company relative to its peers, the higher the deserved executive bonus (more on our method).
Fair for Executives
The Bonus Index is (more):
- Reliable – true operating performance counts, not the economic cycle
- Objective – de-coupled from biased budgets and arbitrary share prices
- Deserved – outperformers deserve high bonuses also during downturns
Fair for Shareholders
The Bonus Index is (more):
- Sustainable – rewards sustainable management practices only
- Aligned – the better the result, the higher the bonus
- Independent – provided according to Obermatt’s Declaration of Independence
Implementing the Bonus Index
Companies implementing the Obermatt Bonus Index receive quarterly updates of their performance and their deserved bonus levels (more).
Dr. Hermann J. Stern about the Obermatt Bonus Index
