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08/22/2014

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It is fascinating how human nature and leverage points influence policy, procedure, and unintended consequences.

If managers can't be trusted to use discretion wisely, then why would employees be trustworthy I wonder?

And for that matter, what makes the HR staff, compensation team, or even the compensation committee of the board of directors exempt from the tempations of human nature to abuse leverage?

Yet, given that the underlying problem is the nature of power to corrupt, it does seem intuitive that distributed discretion (power) would provide some checks and balances against abuse.

Of course, even distributed power only works until subsets of the various power players empty the coffers and distribute tomorrow's seed corn today at which point the whole system has to be revamped/rebooted.

Hmm. Familiar tune eh?

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