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this post was submitted on 16 Jul 2024
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Only fools would conclude that the problem of executive bonuses is caused by a public funding model. If you thought private companies don't hand out outlandish bonuses to executives, you haven't been paying attention.
Also, bonuses are also explicitly part of many compensation packages. It's contractually required for them to be paid, in many cases.
There are lots of reasons why this is done, too; for example, it can be used to reduce risk. If bonuses are tied to the success of a program, then the CBC doesn't pay as much for "duds" that don't earn as much revenue.