Comments on: Paying bonuses and Managing….some thoughts http://blogmaverick.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/ the mark cuban weblog Thu, 18 Mar 2010 08:01:02 +0000 http://wordpress.com/ hourly 1 By: Nick http://blogmaverick.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22526 Nick Mon, 28 Aug 2006 11:09:19 +0000 http://blogmaverick.wordpress.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22526 If Avery did as bad a coaching job as Larry Brown last year do you think he would give money back to Cuban? I don't think so. What good is a contract then, if there is no downside risk to the party signing the contract. A contract that can only be renegotiated up, is not a contract at all. Whatever happened to the days when a contract meant something. As usual the media will try and make Mark the bad guy in this, but Mark is absolutely correct in how he is handling it. If Avery did as bad a coaching job as Larry Brown last year do you think he would give money back to Cuban? I don’t think so. What good is a contract then, if there is no downside risk to the party signing the contract. A contract that can only be renegotiated up, is not a contract at all. Whatever happened to the days when a contract meant something. As usual the media will try and make Mark the bad guy in this, but Mark is absolutely correct in how he is handling it.

]]> By: James McDonald http://blogmaverick.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22527 James McDonald Mon, 28 Aug 2006 11:09:19 +0000 http://blogmaverick.wordpress.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22527 It is true that you higher an employee with the expectation to be great. However, there are only a few coaches each year who reach the level you team just attained. Not to insult but to be exact two coaches reach that point each year. Then you factor those few coaches who reach the top of the NBA in their first year of coaching and I would say the list gets substantially smaller. My point is that your coach just did some extraordinary. He did something that has never been done before with your team. If fact, it was something your former, hall of fame caliber, coach couldn't do with this team while he was the coach. That is not a slam on Don Nelson. I have a great respect for him and his accomplishments. So Avery’s accomplishment is not great but phenomenal! Next point I want to make is if he, Avery, is the man in charge, the one being held accountable for the team success or failures, then why are there other coaches who are subordinate to him getting paid more money? If you Mr. Cuban plan to hold Avery accountable for the team, which a head coach should be held accountable, then what message is being sent to subordinates as to who is in charge and more important to the team and organization? The higher you go up the corporate ladder the more responsibility and pay is received. I feel that your salary is above Donnie Nelson’s. As I assume Nelson’s salary is higher than say a player scout. I am not suggesting he should get hall of fame money but he should be compensated to a point so there is no questions about who is in charge and the rewarded for phenomenal accomplishment. It is true that you higher an employee with the expectation to be great. However, there are only a few coaches each year who reach the level you team just attained. Not to insult but to be exact two coaches reach that point each year. Then you factor those few coaches who reach the top of the NBA in their first year of coaching and I would say the list gets substantially smaller. My point is that your coach just did some extraordinary. He did something that has never been done before with your team. If fact, it was something your former, hall of fame caliber, coach couldn’t do with this team while he was the coach. That is not a slam on Don Nelson. I have a great respect for him and his accomplishments. So Avery’s accomplishment is not great but phenomenal! Next point I want to make is if he, Avery, is the man in charge, the one being held accountable for the team success or failures, then why are there other coaches who are subordinate to him getting paid more money? If you Mr. Cuban plan to hold Avery accountable for the team, which a head coach should be held accountable, then what message is being sent to subordinates as to who is in charge and more important to the team and organization? The higher you go up the corporate ladder the more responsibility and pay is received. I feel that your salary is above Donnie Nelson’s. As I assume Nelson’s salary is higher than say a player scout. I am not suggesting he should get hall of fame money but he should be compensated to a point so there is no questions about who is in charge and the rewarded for phenomenal accomplishment.

]]> By: mary http://blogmaverick.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22528 mary Mon, 28 Aug 2006 11:09:19 +0000 http://blogmaverick.wordpress.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22528 I really hope all this mess does not hurt the morale of the Mavs and their fans. Avery is great and did a great job-so did the Mavs but I feel like the morale might be slipping and the chemistry has been so great. It would be really sad for things to slip now. I really hope all this mess does not hurt the morale of the Mavs and their fans. Avery is great and did a great job-so did the Mavs but I feel like the morale might be slipping and the chemistry has been so great. It would be really sad for things to slip now.

]]> By: Al Williams http://blogmaverick.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22529 Al Williams Mon, 28 Aug 2006 11:09:19 +0000 http://blogmaverick.wordpress.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22529 http://www.dallasbasketball.com/headline_A.asp?pr= This link is a resonable perspective on Regarding the Avery/ Cubin contract issue. http://www.dallasbasketball.com/headline_A.asp?pr=

This link is a resonable perspective on Regarding the Avery/ Cubin contract issue.

]]> By: Steve http://blogmaverick.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22530 Steve Mon, 28 Aug 2006 11:09:19 +0000 http://blogmaverick.wordpress.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22530 I disagree with everyone here, including mark. You are complicating something thats very simple. The reason everyone complicates this issue of compensation is everyone wants to maximize their take at the expense of others. If you find that someone likes to fish are you going to just buy him a new fishing rod to reward them and just when you feel like it. A company is there to make money, period. If you hire someone, they should be doing as good a job as they can and if thats not good enough they shoudnt be there. Once you assume everyone deserves to be there who is there, then you can reward people based on a simple system. They should get a salary, to survive, and a percentage of the growth of the business, whether thru stock or dividends or profit sharing. If the work they do is not rewarding enough in itself then there is a problem anyway. I dont agree with individual bonuses, it says you are singling a person out to treat different in the guise of motivating them. Well you shouldnt have to.Period. Everybody is a part of the same effort, everyone wants the same things in life, to be successful, to be a part of something, to contribute, to be valued, etc. Im not saying everyone should make the same amount of money. (for those that didnt get anything I said). A strong company is when everyone is on the same page, everyone is focused on the same goals, and everyone shares the same desire to be successful. The compensation shouldnt be any different. To seperate work values and compensation values is to divide the company,and weaken it, (in my opinion). I disagree with everyone here, including mark.
You are complicating something thats very simple.
The reason everyone complicates this issue of compensation is everyone wants to maximize their take at the expense of others. If you find that someone likes to fish are you going to just buy him a new fishing rod to reward them and just when you feel like it. A company is there to make money, period. If you hire someone, they should be doing as good a job as they can and if thats not good enough they shoudnt be there. Once you assume everyone deserves to be there who is there, then you can reward people based on a simple system. They should get a salary, to survive, and a percentage of the growth of the business, whether thru stock or dividends or profit sharing. If the work they do is not rewarding enough in itself then there is a problem anyway. I dont agree with individual bonuses, it says you are singling a person out to treat different in the guise of motivating them. Well you shouldnt have to.Period. Everybody is a part of the same effort, everyone wants the same things in life, to be successful, to be a part of something, to contribute, to be valued, etc. Im not saying everyone should make the same amount of money. (for those that didnt get anything I said). A strong company is when everyone is on the same page, everyone is focused on the same goals, and everyone shares the same desire to be successful. The compensation shouldnt be any different. To seperate work values and compensation values is to divide the company,and weaken it, (in my opinion).

]]> By: Keita http://blogmaverick.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22531 Keita Mon, 28 Aug 2006 11:09:19 +0000 http://blogmaverick.wordpress.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22531 Nothing wrong with Avery asking for a better contract--Nothing wrong with Mark saying "No". How are WE even discussing this? There is something wrong with Avery making his concerns public, if in fact that's what he did. I'm sure Avery had an agent. Surely they researched his market value, and even the in's and out's of the contract--if not, shame on them. Reward should go to sustained performance--should Avery be excelling towards the end of his contract, he should DEMAND more money. Until then, it should be completely up to Mark's discretion if he wants to reward him for a job well done. As a business owner, I often give bonuses to my employees without them asking--but that's a "bonus" meaning something on top of what was AGREED upon. And not to discredit what Avery did, but it's not like he took the Bad News Bears to the Finals. They were really good when he came on. I'll say this, there are other coaches in this league (or even a more seasoned Avery) that would have got the MAVS passed the Heat. Too many coaches in this league are given the glory too quickly--Avery, do it for 2 more years, then get PAID! Nothing wrong with Avery asking for a better contract–Nothing wrong with Mark saying “No”. How are WE even discussing this? There is something wrong with Avery making his concerns public, if in fact that’s what he did. I’m sure Avery had an agent. Surely they researched his market value, and even the in’s and out’s of the contract–if not, shame on them. Reward should go to sustained performance–should Avery be excelling towards the end of his contract, he should DEMAND more money. Until then, it should be completely up to Mark’s discretion if he wants to reward him for a job well done. As a business owner, I often give bonuses to my employees without them asking–but that’s a “bonus” meaning something on top of what was AGREED upon. And not to discredit what Avery did, but it’s not like he took the Bad News Bears to the Finals. They were really good when he came on. I’ll say this, there are other coaches in this league (or even a more seasoned Avery) that would have got the MAVS passed the Heat. Too many coaches in this league are given the glory too quickly–Avery, do it for 2 more years, then get PAID!

]]> By: karl meisenbach http://blogmaverick.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22532 karl meisenbach Mon, 28 Aug 2006 11:09:19 +0000 http://blogmaverick.wordpress.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22532 "My rule of thumb is that the people who tell you how valuable they are usually arent, while those who dont, usually are." MC, this is a bad business philosophy. it's that of a skeptic (anybody who speaks up is not valuable?), a philosohy that would encourage employees to 'be humble' versus 'be proud of your work'. (altruist versus egoist) We understand the insecure employee who feels guilty about not contributing is usually the loudest as they try and convince others and themselves as to their value. But as for the productive employees who do lead to successful companies, they should be encouraged to put their activities and accomplishments in writing. to speak up about what they are doing to better the company. no matter the position, by being able to send an email documenting what one is doing, to all decision makers in a company, makes the company smarter, better, faster to respond and share information versus the old school philosophy of 'information is power so i should get and keep all the information i can gather". or, as you suggest by your 'rule of thumb, ,i should keep quiet so my boss will think i'm valuable because that's been his experience. if an employee is not valuable, maybe even a drag on the company, and easily replaced, it will be obvious by the info in the email reports over a period of time. employees also have to be smart enough to understand their value/replacement cost to a company and i think it helps an employee understand this by seeing his accomplishments/ or lack of same, in writing, on a regular basis. and for the productive employees, it is rewarding and encouraging to put accomplishments in writing and to be recognized for them. KM “My rule of thumb is that the people who tell you how valuable they are usually arent, while those who dont, usually are.”

MC,

this is a bad business philosophy. it’s that of a skeptic (anybody who speaks up is not valuable?),

a philosohy that would encourage employees to ‘be humble’ versus ‘be proud of your work’. (altruist versus egoist)

We understand the insecure employee who feels guilty about not contributing is usually the loudest as they try and convince others and themselves as to their value.

But as for the productive employees who do lead to successful companies, they should be encouraged to put their activities and accomplishments in writing. to speak up about what they are doing to better the company.

no matter the position, by being able to send an email documenting what one is doing, to all decision makers in a company, makes the company smarter, better, faster to respond and share information versus the old school philosophy of ‘information is power so i should get and keep all the information i can gather”. or, as you suggest by your ‘rule of thumb, ,i should keep quiet so my boss will think i’m valuable because that’s been his experience.

if an employee is not valuable, maybe even a drag on the company, and easily replaced, it will be obvious by the info in the email reports over a period of time.

employees also have to be smart enough to understand their value/replacement cost to a company and i think it helps an employee understand this by seeing his accomplishments/ or lack of same, in writing, on a regular basis.

and for the productive employees, it is rewarding and encouraging to put accomplishments in writing and to be recognized for them.

KM

]]> By: Jack http://blogmaverick.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22533 Jack Mon, 28 Aug 2006 11:09:19 +0000 http://blogmaverick.wordpress.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22533 Mark, When you hire an employee make it clear to them what you expect and what can change if they excel and how long it takes to change. I understand there two sides to each story, and with normal employees it makes since to give bonuses for excelling at work. I mean at both my jobs I excel and get paid very little, while others are sleeping I am working, while they take 8 hours to do what I did in 2 hours, and when getting paid by the hour it would make since to pay the one employee more and get rid of the other, force a good employee to work for what other are is un moral in the business world, and by both of my bosses I have been told I deserve raises and more but they cant give them to me... Oh well, I understand. Point of the story... If you have a good employee thats hard to come by and over exceeds everyones expectations, and you can afford to pay more and you cant afford to lose him... then give him a bonus... Only makes since. Mark,

When you hire an employee make it clear to them what you expect and what can change if they excel and how long it takes to change. I understand there two sides to each story, and with normal employees it makes since to give bonuses for excelling at work. I mean at both my jobs I excel and get paid very little, while others are sleeping I am working, while they take 8 hours to do what I did in 2 hours, and when getting paid by the hour it would make since to pay the one employee more and get rid of the other, force a good employee to work for what other are is un moral in the business world, and by both of my bosses I have been told I deserve raises and more but they cant give them to me… Oh well, I understand.

Point of the story… If you have a good employee thats hard to come by and over exceeds everyones expectations, and you can afford to pay more and you cant afford to lose him… then give him a bonus… Only makes since.

]]> By: Jack http://blogmaverick.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22534 Jack Mon, 28 Aug 2006 11:09:19 +0000 http://blogmaverick.wordpress.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22534 Mark, When you hire an employee make it clear to them what you expect and what can change if they excel and how long it takes to change. I understand there two sides to each story, and with normal employees it makes since to give bonuses for excelling at work. I mean at both my jobs I excel and get paid very little, while others are sleeping I am working, while they take 8 hours to do what I did in 2 hours, and when getting paid by the hour it would make since to pay the one employee more and get rid of the other, force a good employee to work for what other are is un moral in the business world, and by both of my bosses I have been told I deserve raises and more but they cant give them to me... Oh well, I understand. Point of the story... If you have a good employee thats hard to come by and over exceeds everyones expectations, and you can afford to pay more and you cant afford to lose him... then give him a bonus... Only makes since. Mark,

When you hire an employee make it clear to them what you expect and what can change if they excel and how long it takes to change. I understand there two sides to each story, and with normal employees it makes since to give bonuses for excelling at work. I mean at both my jobs I excel and get paid very little, while others are sleeping I am working, while they take 8 hours to do what I did in 2 hours, and when getting paid by the hour it would make since to pay the one employee more and get rid of the other, force a good employee to work for what other are is un moral in the business world, and by both of my bosses I have been told I deserve raises and more but they cant give them to me… Oh well, I understand.

Point of the story… If you have a good employee thats hard to come by and over exceeds everyones expectations, and you can afford to pay more and you cant afford to lose him… then give him a bonus… Only makes since.

]]> By: Jared Shojaian http://blogmaverick.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22535 Jared Shojaian Mon, 28 Aug 2006 11:09:19 +0000 http://blogmaverick.wordpress.com/2006/07/22/paying-bonuses-and-managing-some-thoughts/#comment-22535 If you don't want to tick off your employee (Avery Johnson) who is the face of the franchise... not yourself... then yes, you will give a raise. There is an inelastic supply of workers. However, there is a very elsastic supply of good coaches, you can't compare this to a normal business principle. You are at their mercy, not the other way around. So consider that business scenario Mr. Mark Cuban MBA. Do whatever it takes to give Avery what he wants, and don't let your antics get in the way. If you don’t want to tick off your employee (Avery Johnson) who is the face of the franchise… not yourself… then yes, you will give a raise. There is an inelastic supply of workers. However, there is a very elsastic supply of good coaches, you can’t compare this to a normal business principle. You are at their mercy, not the other way around. So consider that business scenario Mr. Mark Cuban MBA. Do whatever it takes to give Avery what he wants, and don’t let your antics get in the way.

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