Wednesday, October 04, 2006

Stock Option Grants Same Method Bush Using to Improve Education & Health Care

President Bush believes people need to be incentivized to perform. Dangle a reward in front and the quality of work improves is his theory. The recent widespread stock option grant scandal throws a big wrench in his monkey works. Stock options are given to executives to improve the price of a share of the companies stock.

That data shows over 2,000 companies abused this extrinsic motivation tool. This should be of major concern to those involved in education through No Child Left Behind. As health care is next for a big Bush dose of bribery, I mean carrot and stick renumeration, hospital administrators and providers should be very concerned.

The evidence in corporate America shows cheating to be a widespread practice under such an incentive system. Should we be surprised to find it elsewhere?

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