so how about we propose a very high tax on bonuses which were not earned.
to determine if they were earned should be easy -
case 1 - the company is in profit (i.e. profit share)
case 2 - company is moving into profit from loss (incentive)
case 1 is trivial - indeed both cases would be covered if bonuses were simply shares and people were patient, and paying stock as a bonus was only taxed as income.
In the counter example, senior staff at companies like AIG or RBS who made a massive loss AND only exist because of bailouts, would be taxed at (say) 90% on income over (say) 1M pounds. This would leave incentives intact, but recoup money from poor decisions by early shareholders meetings. at least to the government. who is, um, the biggest shareholder now.