Bonuses are in the news again, but this time the focus is on the government. The Times Picayune quotes a spokesman from the Office of Thrift Supervision on bonuses for government officials: “These [i.e. the bonuses] are meant to motivate employees, have them work hard. The economy has taken a downturn in recent years. I’m...

Since September 2008 executive bonuses have been criticized as excessive, unfair, and unnecessary. Case in point: Last week in a public speech President Obama referred to executive bonuses as being “obscene.” Are executive bonuses really a problem? Or just a way for politicians to gain public approval? Consider the traditional return on investment model: the...