Do bonuses hurt or help?

I have been reading some about banking regulations in the UK.  They have set up a bonus system for CEO’s of banks that limits how much of a bonus they can receive at one time and also ties the bonus closer to the performance of their company.

This sounds like a good idea right?  After all of the things that have happened in the last year and a half, most people are probably not going to have any problems with this.  Most people are thinking somewhere along the lines of, ” that is just too much money for one person to make.”

So what’s your take on the situation?   Do you think CEO’s should not get bonuses for what they do?

My thought is that a bonus is similar to working for commission.  I see no problem with a business paying someone to make their company better.  That’s what you do with every single employee.  Though the amount that they are payed definitely seems like a lot to many people, it’s a question of value.  What is the value that a person can bring to a company?  Granted that there are plenty who have taken advantage of this, but that’s where self governing comes in.  If a company doesn’t want someone to work for them, then they fire them.