f Canada's biggest and highest profiting companies. However, it struggled greatly during the eighties, and lost money most years. That did not stop its chairman Victor Rice from earning "more than $1-million in annual compensation." This is clearly an abuse of power. If an employee is allowed to continuously do a poor job, while still benefiting from his job, then there is little reason for them to attempt and do a good job. In the case of Victor Rice, there was obviously no correlation between the quality of his work, and the pay that he received. If he did such a bad job though, then how come he still had a job. This answer to this is one that affects many businesses. Many times it actually costs a company more to get rid of an unwanted employee, than it would to keep them on as a worker. "When Paul Stern stepped down as CEO of Northern Telecom last year, he left with $164,112 for two months of employment, a cash compensation package totaling $6 million and another $1.5 million in stock options." The reason for this is that many times, when a position such as CEO comes into play, a contract is written up. That means that the worker is supposed to be with the company for a certain amount of time. If this time period is cut short, then that is a breach of their contract. By law, they must be compensated for their removal from the company. This may cause a business to hold onto an employee that is unwanted, because it is such a hassle to get rid of them. One solution is to make a direct connection between the amount of money that a person is paid, and the quality of work that the person does. This would not only put pressure on that individual to do a good job, but it would also give them incentive to produce more. The best possible way to implement this would be to start people off with a low base salary, and award large bonuses for any goals that they meet. Right now, there are many hard working employees. They appear to be putting t...
