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VOX: When it pays to have lower expectations

Mar 13, 2015 - The Globe and Mail (Canada)

You might think that when profits drop sharply at a company, executive bonuses fall in tandem. And if you do think this, I am sad to report that you are naive.

For an example, we turn to Potash Corp. of Saskatchewan Inc., which has been weathering rocky times in its industry. The pre-eminent seller of potash had an amazing multiyear run as growing demand for the fertilizer jacked up the price of its primary product, with the company's share price following along. That storyline unravelled,...