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  Bonuses can and do work in all sorts of complex decision making roles, they are/should/must be for exceptional performance i.e. going beyond what is expected for the base salary.
  So for example Project Managers are paid to deliver to time, cost and quality; if they deliver ahead of time or below cost but at the required quality they should receive a bonus, likewise a fund manager that exceeds benchmarks and delivers positive performance (ideally in absolute terms) should be rewarded.
  
  The prospect of the ability to EARN a bonus is what motivates many to produce an above "on target" performance. All performance targets should be SMART (specific, measurable, achievable, realistic and time constrained) and there should also be agreed stretch targets at which bonuses kick in. Measure-ability is not a pure arithmetic exercise, it can include qualitative measures and even use proxy measures to gauge. and assess success
  
  Where there is issue with bonuses is the nonsense that crept into the City of "guaranteed" bonuses - this is pure tautology - as soon as it is guaranteed it is part of the basic salary. This nonsense practice has filtered through the City to other areas of business and it detracts hugely from the real incentivisation of senior staff, directors etc.
  
  Ultimately bonuses in the private sector are none of our business they are mostly at the discretion of the management and the shareholders.

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