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European regulators have actively and vigorously cutting company bonuses in light of the current global economic recession. Although some government-related entities in the USA are being subjected to bonus caps, many are moving ahead with discretionary bonuses.

Are these defensible in light of an economic recession? Or, are they important to attract and retain talent that will help companies quickly recover from the economic morass?

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Solution Summary

European regulators have actively and vigorously cutting company bonuses in light of the current global economic recession. Although some government-related entities in the USA are being subjected to bonus caps, many are moving ahead with discretionary bonuses.

Are these defensible in light of an economic recession? Or, are they important to attract and retain talent that will help companies quickly recover from the economic morass?

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They are defensible, if used in the way that they were intended to be used. When used appropriately, discretionary bonuses can be a valuable tool in retaining talent, and attracting new talent. Basically, each bonus is determined solely on the will of the employer. The amount of the bonus, and criteria for giving the bonus, are not based on any written, set guideline or procedure. What this does allow for is for companies to use ...

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