I Am a Nobleman in England

For a long time, although Smith Jama helped Arthur operate and made a lot of money, 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 bigger the dividend" This is the basic feature of Wall Street's incentive mechanism, and it is also an incentive mechanism that is generally learned and implemented by the world's financial industry.

However, this is like a crisis seed sown with greed, which has inspired the disaster of a large number of companies under the high-risk strategy. Pursue short-term profit maximization and form a radical, adventurous and impetuous cultural atmosphere.

Of course, most of the time, as the boss or the shareholders, driven by greed, they blindly pursue profit maximization, and "force" or "connite" the high-risk business behavior of the senior executives under them.

However, Arthur did not regard the financial investment industry as his main business from the very beginning, it was just his way of collecting money in the initial stage, and what Smith Jama did before was only based on the requirements of his boss The task, played the role of a trader, naturally does not need to give any bonus 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 receive "sky-high compensation", even if it causes damage to the company in the future. Huge damage does not affect their continued enjoyment of huge wealth.

This will naturally prompt management to adopt aggressive strategies, chasing short-term profits, and even whitewashing financial reports, exaggerating short-term profits, concealing potential risks, and even manipulating stock prices in exchange for huge salary incentives. This not only violates the prudent business philosophy that should be followed, but even goes to the opposite. It is not trying to control risks as much as possible, but chasing high risks in order to obtain high returns.

Although Arthur has gotten rid of the category of financial novice through self-study, he has kept in mind the old saying of the Chinese Dynasty, "money and silk touch people's hearts", and the emotion of gratitude has a time limit. In the face of huge benefits, this time may will be shorter.

It's not that Arthur thinks badly of people, it's just that one thing to understand is that human nature cannot stand the test!

The relationship between Arthur and Jama Smith is that of principal and agent. Fundamentally, the two have different interests, pursue different goals, and have different motivations for their actions.

The second is the asymmetry of responsibility. For the agent Smith, he has control over the business but does not assume responsibility for the profit and loss, while the principal Arthur loses control of the operation but ultimately assumes responsibility for the profit and loss.

This unequal responsibility actually weakens Arthur's constraints on Smith and increases the risk of Smith's decision-making mistakes. And since it is not their own assets that are being lost, the agent may make decisions irresponsibly.

Again, there 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, damage the interests of the principal, and embezzle the assets of the principal.

Moreover, the principal-agent relationship is a contractual relationship. Due to the uncertainty of business operations and the limitations of information, there will always be loopholes in the contract between the principal and the agent, there will always be places that are not well thought out, and there will always be loopholes. drill.

Therefore, from the very beginning, Arthur only gave Smith a start-up capital of one million pounds for them to operate. After a period of observation and a series of operations, Arthur also decided to make the company a viable company. The funding figure for the operation increased to £10 million.

As for the gold, foreign exchange futures, and investment in U.S. stocks that Smith operated before, all of them were Arthur's private accounts and private funds. Smith has always been directed by Arthur's decision.

The reward given to Smith this time is also of a personal nature. After all, the idea of ​​foreign exchange futures was proposed by Smith, and after some operation, he also earned more than 6 million yuan. Giving him some bonuses is also justified.

Of course, the investment company still needs an incentive mechanism. After all, there is no incentive, and salary alone cannot retain talents. Therefore, after the company’s operating capital increased to 10 million pounds this time, Arthur explained to Smith The company's reward system.

"The year-end bonus, based on the total income of each person in a year, is a proportional commission incentive. At present, 10% of the investment income will be distributed first, and those who lose money will be eliminated directly!"

Hearing Arthur's decision, Jama Smith said with a smile on his face: "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. As I said, I am not a stingy boss. The company will grow in the future. Together, the current group of people will become the backbone of the company."

Arthur continued to draw big pies. 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 motivate the current employees to be aggressive and loyal to the company, and push the company into a healthy development track.

With the good news, after Smith Jama, who was full of joy, left, the corners of Arthur's mouth rose slightly. Anyway, he is getting better in terms of management.

Rumble——

At this moment, thunder roared outside. Arthur frowned slightly, stood up and walked to the window, and looked at the cloudy London sky. At some point, it had turned into dark clouds overwhelming the city, and the sky changed. black.

Walking to the light switch, pressing the switch, the dark office was brightened up again, "Didi!" Walking back to the desk, the phone on the table rang a text message notification tone, picked up the phone and read the text message, frowning involuntarily tighter.

The British National Environment Agency issued a domestic rainstorm warning and flood warning text message. Without hesitation, I found out the number and called Corinna, the CEO of the coastal power plant, to inquire and instruct the power plant's disaster prevention situation.

There is no way, the more assets there are, the more things to worry about, and if anything happens, it will be a loss for him.

After getting Corinna's reply that there was no problem, Arthur also felt relieved.

"Boss, I just have some news to tell you. On the evening of the 21st, there will be a reception for the energy industry in London. An invitation has been sent to you. You are sincerely invited to attend. At that time, the heads of major energy companies in the UK industry will be present. . . ”

"Okay, I see. When the time comes, let's meet up and go together." Arthur said, for making his debut at an energy industry gathering, 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 receptions, especially now that he urgently needs to find some investors who are interested in the power industry, sell some of his shares, and cash out funds At the same time, it also completed the equity reform of the power plant by the way, paving the way for the next IPO listing.

After hanging up Corinna's phone, Arthur pondered for a while. Naturally, he needed to find a female companion for him to attend the reception. After thinking about it for a while, if he didn't want to cause trouble for himself, only his investment and financial advisor Angela was the most suitable.

Helplessly shaking his head and laughing twice, he took his mobile phone, found Angela's number, and dialed it.