Did you ever work as a rank and file at a nanny state utility?
Abstract- Well-planned bonus programs can contribute to a company's competitiveness by encouraging superior performance and, ultimately, improving the organization's earnings and cash flow. Typically a major co mponent of executive compensation programs, an annual incentive bonus scheme can also help firms attract and retain highly talented personnel. However, there are several issues that should be considered in the design and implementation of such a program. One of these is the considerable amount of corporate funds that will have to be spent to provide incentives attractive enough to motivate executives to improve their performance. Another consideration is the potential damage an ineffective program may do to the organization. Management should keep in mind that a successful program is one that has an internal control structure and a sensible upfront design, offers fair and reasonable individual bonus rewards, and is well-managed.
Heiman, Frederick D.
Unfortunately this management has shown that their own executive reward structure has neither improved performance, enhanced retention or created value for the company or shareholders.
The point is these programs must be carefully considered and implimented at the correct time if they are to be effective. During ramp up and projecting "small" go forward is not the time to start handing out cash. The only thing this management has been good at it cash flow - out that is. If you give a child icecream before they clean their room you will have great difficulty motivating them after the icecream is gone, much like low end engineers.
The only good information from the press release is that they have a geologist, the bad parts are many but very importantly why would they tell us about a secretary leaving and a shuffle but not about the appointment of a senior geologist? Sounds like a contract hire to get them over the hump of start up, the one person who could make a significant impact and should be getting recognition is the one they have elected to ignore, not a good sign at all. Mr. drill and cart driver are very important to every mining operation but they are not going to significantly impact production no matter how hard they work. The money needs to go to where is will be effective, organization, planning and expolitation, never a stong suit of this corporate management.