All along, although Smith Jama helped Arthur operate and made a lot of money, Arthur never gave the other party any bonus incentives, and the reason for doing so was to curb the seeds of greed.

"The bigger the stake, the more dividends" 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 sown by greed, incentivizing a large number of companies to perish under high-risk strategies. Pursue the maximization of short-term returns, and form a radical, risk-taking, and impetuous cultural atmosphere.

Of course, more often than not, it is the boss or the shareholders who are driven by greed to blindly pursue profit maximization, and "force" or "condone" the high-risk business behavior of their executives.

However, Arthur did not regard the financial investment industry as his main business from the beginning, it was just his initial way of collecting money, and what Smith Jama did before was just a task to complete according to the requirements of his boss, playing the role of a trader, so naturally there was no need to give any bonus incentives.

You know, once Arthur sets up incentives from the beginning, it will be a disaster for Arthur himself, because if executives can achieve the prescribed financial targets, they can get "sky-high compensation", even if it causes great harm to the company in the future, it will not affect them to continue to enjoy great wealth.

This naturally prompts management to adopt aggressive tactics, chasing short-term profits, even whitewashing financial reports, inflating short-term earnings, concealing potential risks, and even manipulating stock prices in exchange for huge compensation incentives. This not only violates the prudent business philosophy that should be followed, but even goes to the opposite side, not to control risks as much as possible, but to chase high risks in order to obtain high returns.

Although Arthur has gotten rid of the category of financial novice through self-study, he remembers the old saying of the Celestial Empire, "wealth moves people's hearts", and the emotion of gratitude and gratitude also has a time limit, and in the face of huge interests, this time may be shorter.

It's not that Arthur thinks badly of everyone, it's just that you have to understand one problem, people can't stand the test!

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

The second is the asymmetry of responsibility. For agent Smith, who holds control of the business but does not bear the responsibility for profit and loss, while the principal Arthur loses control of the business but ultimately bears the responsibility for profit and loss.

This asymmetry of responsibility actually weakens Arthur's restraint on Smith and increases the danger of Smith's decision-making mistakes. And because it is not their own assets that are being lost, the agent may not be responsible for making decisions.

Again, there is information asymmetry. Due to the different internal operation and 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 principal's assets.

Moreover, the relationship between principal and agent is a contractual relationship, due to the uncertainty of business operation and the limitation of information, there will always be loopholes in the contract between the principal and the agent, there will always be ill-considered places, and there will always be loopholes to exploit.

Therefore, from the beginning, Arthur only gave Smith a million pounds of start-up capital for them to operate, and after a period of observation and testing of a series of operations, Arthur also decided to increase the company's operational capital figure to 10 million pounds.

As for the gold, foreign exchange futures, and investment in U.S. stocks operated by Smith before, all of them were Arthur's private accounts and private funds, and Smith was just commanded by Arthur's decision all along.

The reward given to Smith this time is also private, after all, the idea of foreign exchange futures was proposed by Smith, and after some operation, he also earned more than six million, and it is also appropriate to give him some bonuses.

Of course, there is still an incentive mechanism for investing in the company, after all, there is no incentive, only relying on salary, it is impossible to retain talents, so after the company's operating capital increased to 10 million pounds, Arthur and Smith explained the company's incentive mechanism.

"The year-end bonus, according to the total amount of income each person earns in a year, is a proportional commission incentive, and at present, it will be distributed with 10% of the investment income, and the loss will be eliminated directly!"

Hearing Arthur's decision, Smith Jama said with a smile: "Everyone will be very happy to hear this good news, thank you boss." ”

"Oh, don't be too little, after all, our company is still very small, but as long as we work together, I believe that the company will continue to grow and develop, I said, I am not a stingy boss, the company will grow up in the future, and the current group of people will become the pillars of the company." ”

Arthur continues to paint the pie, and in addition to the material incentives provided by economic benefits, Arthur again mentions strong spiritual incentives, that is, power and status incentives. This can motivate the current employees to be enterprising and loyal to the company, and promote the company to enter the track of Liangxing's development.

With the good news, after Smith Jama left, the corners of Arthur's mouth rose slightly, no matter what, he was getting better at management.

Boom Boom –

At this moment, there was a roar of rolling thunder outside, Arthur frowned slightly, stood up and walked to the window, looking at the originally cloudy London sky, I don't know when, it has become a black cloud pressing down on the city, and the sky has turned dark.

Walked to the light switch, pressed the switch, and the dim office brightened up again, "Didi!" walked back to the desk, the mobile phone on the table rang a text message prompt, picked up the phone and read the text message, and frowned even tighter.

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

There is no way, the more assets he has, the more things he needs to worry about, and any thing that happens is a loss for him.

After receiving Corinna's affirmative confirmation that there were no questions, Arthur was also relieved.

"Boss, I just have news to tell you that on the evening of the 21st, there is a drinking party in the energy industry in London, and you are invited to attend, and the heads of major energy companies in the British industry will attend... ”

"Okay, I see, let's go together then. Arthur said that for his first appearance at the energy industry party, Arthur naturally would not refuse.

He is a newcomer in the industry, naturally needs to increase his contacts in the industry through these industry gatherings and cocktail parties, especially now, he is now in urgent need of looking for some investors who are interested in the power industry, sell some of the shares in his hands, cash out the funds, and at the same time complete the equity reform of the power plant by the way, paving the way for the next IPO listing.

Hanging up Corinna's phone, Arthur pondered for a while, attending the drinking party naturally needed to find a female companion for himself, and after thinking about it, if he didn't want to cause trouble for himself, only his investment and financial advisor Angela was the most suitable.

Helplessly shook his head and laughed twice, took the mobile phone, found Angela's phone, and dialed it.