Posted 12/22/2024 11:35 (#11021223 - in reply to #11020494) Subject: RE: Farming, government payments and return on equity
nc ks
reformedbanker - 12/21/2024 17:33
For employees that are doing as instructed type roles, yes bonus tied to how well they did assigned roles. For decision making employees, I think bonus tied to profit makes more sense. Obviously profit has outside uncontrollable variables, so always discretion.
A lot of ways to calculate ROE. It's dependent on leverage ratio and book vs market vs hybrid equity.
I agree, but decision making employee bonus should already be spelled out with the metrics defining the bonus amount. Then just figure it.