Improve employment contract in wake of crisis

Comments on Ken Phillips “The core of the company is rotten”, 19/2009, http://www.businessspectator.com.au/bs.nsf/Article/Nobel-prize-Alan-Greenspan-pd20091019-WXQK3?OpenDocument&src=sph

It is unlikely in practical terms to have employment contract worked out as nicely as commercial contract.

However, it is entirely possible to have employment contract especially those for executives made to take account reasonably longer term effects on those executives on firm outcomes.

This would simply requires a delayed payments dependent on not just the outcomes when an executive is in charge, but also an independent, objective and fair evaluation sometime after the employment is over.

If the employment contract for executives is made in such terms and there are independent and objective evaluations, then there should not be any problem with for it to provide the most appropriate incentives to executives and fair pays.

Further, criminal charges can be laid to executives who are later shown as fraudulent during their employment.

This will ensure firms are as efficient and fair as possible.