Editor's Comment: On Balance, Bonuses Work

Marketing, October 28, 2009 | Go to article overview

Editor's Comment: On Balance, Bonuses Work


The close association of the word 'bonus' with fat-cat bankers in the public mind means that all corporate pay deals are now under close scrutiny from those outraged at the perceived unfairness of such rewards.

However, marketers should not be ashamed of receiving performance-related bonuses. On the contrary, used wisely, they provide a robust incentive that recognises the direct impact that marketing has on a company's bottom line.

For proof, one need only look at the pivotal role played by marketing in the recent success stories of several key brands. Few could argue, for instance, that the turnaround in Sainsbury's fortunes does not warrant some kind of reward for the team that made it happen. McDonald's and O2 are other examples of business revitalisation that have their roots in marketing.

During a recession, the need to recognise that marketing excellence is even more vital. A clever idea, executed effectively, can make a massive difference to the balance sheet.

Companies that link payouts to profits will be handing out smaller awards this year. …

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Editor's Comment: On Balance, Bonuses Work
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