Personal preference may no longer be the decisive factor

Intro: Personal preference may no longer be the decisive factor


Volkmar Denner’s venture has attracted quite a lot of attention. Last year, some have even called the CEO of Bosch a visionary. The reason for this was Denner’s announcement to rethink the technology group’s bonus payments for executives. Individual bonuses are now a relic of Bosch‘s past. More often than not, small and medium-sized businesses have also taken up variable income models. Björn Knothe, recruitment consultant and CEO of division one, is convinced that this trend is going to continue. In his opinion, the variable amount is likely to comprise about 30 % of an average sales representative’s annual income. In order to prevent excesses in this respect, recruitment consultant Knothe is of the opinion that the following ought to be observed: “Companies need to establish a reasonable and fair system for variable remuneration in order to ensure an equal treatment rather than making unfounded payment decisions according to personal preference.”  (available only in german)

(Source: Wirtschaftszeitung Baden-Württemberg/Issue 02/2016 / Oliver Schmale)

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