Hey kid, I'm not interested in whose take is right, but your accusation that I'm wrong is wrong. It's arbitrary, and either pick is just someone's pick- there's no certain way to decide what to track against. Picking revenue or profits is meaningless, either is valid.
I would say, to my defense- if a company is in the red, would a violation mean they get a negative penalty? So is there a linear fee = rate * profit + base penalty, or is it not a linear fee structure you are supposing?
I don't see why a violation would be tied to performance, frankly, but I also would not try and argue that you are "wrong" either, it's just not how I would figure it. I'd also tend towards thinking the choice of a 0.0010% revenue fee, if we want to be accurate about it, rather indicates that it was indeed picked against revenue, rather than merely coincidence, but again I wouldn't claim to be right or that people who wanted to figure it differently were wrong.
I would say, to my defense- if a company is in the red, would a violation mean they get a negative penalty? So is there a linear fee = rate * profit + base penalty, or is it not a linear fee structure you are supposing?
I don't see why a violation would be tied to performance, frankly, but I also would not try and argue that you are "wrong" either, it's just not how I would figure it. I'd also tend towards thinking the choice of a 0.0010% revenue fee, if we want to be accurate about it, rather indicates that it was indeed picked against revenue, rather than merely coincidence, but again I wouldn't claim to be right or that people who wanted to figure it differently were wrong.