Benjamin Vincent is the CFO of Annie Company. The companys CEO has asked Benjamin to design an incentive scheme that will motivate employees to focus more on the companys bottom-line results. Benjamin is considering a plan that will give each employee a bonus based on the companys reported net income for the year. Each employee will receive an amount equal to the companys earnings per share multiplied by either 10,000 times, 50,000 times, or 200,000 times, depending on the employees level in the company. Last year, Annie Companys earnings per share was $1.31. Benjamin has asked you for your advice. In particular, he wants you to explain the disadvantages of having an earnings-based bonus system.