CORPORATIONS - LEGAL ASPECTS OF CORPORATION BONUSES

It would clearly be inaccurate to say that the percentage method of compensation represents a modern idea. Its rationale is so simple that there must have been instances of its utilization in early history. Be that as it may, it is a device which attained little prominence in this country before the beginning of the present century and which has grown since then with amazing rapidity. Along with the growth of bonus plans in some form or another, perplexing problems have arisen economic, social and perhaps even moral as well as legal.

The emphasis of this comment will be upon the law and these other considerations will be viewed primarily in that light.