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Bonus schemes play a role in tailings dams failures - research
A paper published in the journal Resources Policy states that bonus schemes for middle management employees in mining companies play a role in tailings dams failures. According to the research article, such compensation packages actively encourage managers to cut costs and increase production, as the material decisions that put into motion such measures lay in their hands and positive results would increase their annual bonuses. Although most mining companies don’t make public the compensation packages they give their middle management personnel, such incentives are known to be a common practice in the industry. ... (full story)