Dirty Bonus Trick

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Metro AG, otherwise known as Metro Group, is a German global wholesale/cash and carry group, it has the largest market share in its home market being number fifth in the world.

At Metro, they developed a new bonus trick, which can be described as innovative or bold, depending on which side of the bonus you are. It works like this: The fiscal year is shortened to nine months (January to September). The profitable Christmas season is missing. However, this means:

– no profit and no dividend.

But:

For the calculation of Executive bonuses there is also a nine months basis – but in a different way. Considering the full year (including Christmas), divided by twelve and multiplying the result by nine.

Wow! This now rises to 8.3 million Euro directors’ compensation.

We are always on the wrong side if the story, aren’t we? However, if I was the responsible bookkeeper in that company they would put ME into prison if someone finds out!

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