Imagine the following scenario a company chronicly looses money, management makes poor decisions that lead to goods and services that nobody wants, they have stopped paying a dividend and warned that they will need to tap the share holders for more money.
What would you do in this situation ? Most people would ask for significant changes to the board and paycuts for the executives and new targets that need to be reached, if they opt not to do so then we withhold the cash.
The problem with government agencies and departments is that when their performance is bad they still want more money to improve… perhaps if there was a way for taxpayers to with hold monies until we got improvements we would see government departments incentivised to change.
Inspired by the following tweet.
