I am a nobleman in England

For a long time, although Smith Jama helped Arthur operate and made a lot of money, but Arthur never gave the other party any bonus incentives. The reason for doing so was to curb the seeds of greed.

"The bigger the bet, the more dividends" this is the basic feature of Wall Street's incentive mechanism, and it is also an incentive mechanism commonly learned and implemented by the world's financial industry.

However, this is like a crisis seed planted with greed, which has inspired a large number of companies to extinction under high-risk strategies.Pursue the maximization of short-term income and form a radical, adventurous, and impetuous cultural atmosphere.

Of course, more often, as a boss, or shareholders driven by greed, blindly pursue profit maximization and "force" or "connivate" the high-risk business behaviors of their senior executives.

However, Arthur did not regard the financial investment industry as his main business from the beginning. It was just his initial way of collecting money. Moreover, what Smith Jama had done before was only done according to the requirements of his boss. The task of playing a role as a trader, naturally does not need to give any incentives.

You must know that once Arthur develops an incentive mechanism from the beginning, it will be a disaster for Arthur himself, because if the executives can complete the prescribed financial indicators, they can get "astronomical compensation", even if it will cause damage to the company in the future. The great harm does not affect their continued enjoyment of great wealth.

This will naturally prompt management to adopt aggressive strategies to chase short-term profits, even whitewash financial reports, exaggerate short-term profits, conceal potential risks, and even manipulate stock prices in exchange for huge compensation incentives.This not only violates the prudent business philosophy that should be followed, but even goes to its opposite, not to control risks as much as possible, but to chase high risks in order to obtain high returns.

Although Arthur has gotten rid of the category of financial novices through self-study, he still keeps in mind the old saying of the celestial dynasty, "Wealth touches people's hearts." There is also a time limit for gratitude. In the face of huge interests, this time is probably Will be shorter.

It's not that Arthur thinks people badly, but to understand one problem, people cannot stand the test!

The relationship between Arthur and Smith Jama is the principal and the agent. Fundamentally, the two have different interests, different goals, and different motivations.

The second is the asymmetry of responsibility.For the agent Smith, he has control over the business but does not bear the responsibility for profit and loss, while the client Arthur loses the right to operate but ultimately bears the responsibility for profit and loss.

This unequal responsibility actually weakened Arthur's restriction on Smith and increased the risk of Smith's decision-making errors.And since it is not their own assets that are losing money, the agent may make decisions irresponsibly.

The third is information asymmetry.Due to the different internal management information of the enterprise, it is sometimes difficult for the principal to effectively supervise and restrain the agent, but the agent may deceive the principal, harm the principal's interests, and infringe on the principal's assets.

Moreover, the principal and agency relationship is a contractual relationship. Due to the uncertainty of business operations and the limitation of information, there will always be loopholes in the contract between the principal and the agent, there will always be ill-conceived areas, and there will always be gaps. Drill.

Therefore, from the beginning, Arthur only gave Smith a start-up capital of 1 million pounds to allow them to operate. After a period of time and a series of operation observations and tests, Arthur also decided to make this company available. The number of operating funds increased to 10 million pounds.

As for the gold, foreign exchange futures, and investment in US stocks that Smith had previously operated, all were Arthur's private accounts and private funds, and Smith had always been directed by Arthur's decision.

The reward given to Smith this time is also personal. After all, Smith proposed the idea of ​​foreign exchange futures, and after doing some operations, he also made more than six million. It is also right to give him some bonuses.

Of course, there is still an incentive mechanism for investment companies. After all, there is no incentive. Only salary can not retain talents. Therefore, after the company's operating capital increased to 10 million pounds this time, Arthur and Smith explained The company’s incentive mechanism.

"The year-end bonus is based on the total amount of income earned by each person in a year, and a proportional commission is provided. At present, 10% of the investment income is allocated first, and the losses are directly eliminated!"

Hearing Arthur's decision, Smith Jama said with a smile: "Everyone will be very happy to hear this good news, thank you boss."

"Hehe, don’t be too small. After all, our company is still small. However, as long as everyone works together, I believe that the company will continue to grow and develop. I said, I’m not a stingy boss. The company will grow in the future. Get up, this group of people will become the backbone of the company."

Arthur continued to draw the pie. In addition to the material incentives provided by economic benefits, Arthur once again mentioned strong spiritual incentives, that is, power and status incentives.This can inspire the current employees to enterprising and remain loyal to the company, and it will promote the company to enter the track of good development.

With the good news, after Smith Jama left with a happy face, the corner of Arthur's mouth rose slightly. In any case, he is getting better for management.

Rumbling--

At this moment, there was a roar of thunder outside. Arthur frowned slightly, stood up and walked to the window, looking at the originally cloudy London sky. At some point, it has become dark clouds and the sky has changed. black.

Go to the light switch, press the switch, the dim office is brightened again, "Beep!" Walking back to the desk, the phone on the table rang the text message alert tone, picked up the phone and read the text message, frowning. The tighter.

The British National Environment Agency issued the domestic rainstorm warning and flood control warning text messages. Without hesitation, he directly found the number and called the chief executive of the coastal power plant, Corinna, to inquire about the disaster prevention situation of the power plant.

No way, the more assets there are, the more places to worry about. Anything that happens will be a loss to him.

After receiving Corinna's confirmation that there was no problem, Arthur also felt relieved.

"Boss, I just have a piece of news to tell you. On the evening of the 21st, there is an energy industry cocktail party in London. An invitation has been sent and you are cordially invited to attend. By then, the heads of major energy companies in the UK industry will attend. ..."

"Okay, I see. At that time, let's go together." Arthur said. For his first appearance at a party in the energy industry, Arthur would naturally not refuse.

As a newcomer in the industry, he naturally needs to increase his contacts in the industry through these industry gatherings and cocktail parties. Especially, he urgently needs to find some investors who are interested in the power industry, sell part of his shares, and cash out funds. At the same time, it also completed the equity reform of power plants by the way, paving the way for the next IPO.

Hanging up Corinna's phone, Arthur pondered for a while. At the reception, he naturally needed to find a female partner for himself. After thinking about it, if he didn't want to cause trouble to himself, his investment and financial advisor Angela was the most suitable.

Reluctantly shook his head and laughed twice, holding the phone, found Angela's phone number, and dialed out.