... article on executive compensation in the FT:
While I'm not (yet) ready to accept the target based compensation as outlined in the article as the answer, there is clearly a flaw in the theory of the role of managers being to maximise shareholders wealth. Needs to be looked at anew.
A possible solution could be to outsource even more - all but a few functions outsourced to consultants paid for a defined set of deliverables. These consultants in turn could be organised into "guilds" (for the lack of a better word) that would receive and disseminate payments to their members. In lean times, all members share the pain.
What do you guys think?