[rs1978]

Ernie Ernie Ernie, on 22 July 2014 - 11:34 AM, said:

The expectation would have been reflected in the respective premiums I assume

Agreed, it could have been the case that transferring the risk to an insurer was considered but the premium was such that it would have been little more than a 'pound swapping' exercise...i.e. the proposed bonuses are £300k (for the sake of illustration), the premium required to cover them was £295,000.

But, if they went through this kind of thought process this should have reinforced the fact that our promotion was 'likely' and that contracts weighted heavily on bonuses to this end was storing up financial difficulties for another day. Well, that day seems to have arrived!

[starsky72]

Ah yes. I do recall it being said that a lot more of the organisation was being done in house and differently to the year before.. I guess it could have meant a larger slice of the pie, in fact it was a larger slice, it was the pie that was smaller