[frellus]

Worked at a large global financial company 10 years ago in tech. It was well known that the bonus pool was finite per division, but it was also allocated on ratios based on performance reviews and retention. Everyone knew the more people, the smaller the pool -- but then again, tech was a "cost center" so it wasn't like adding technology people (with the exception of quants) earn the bank more money.

I suspect if you incentivized managers to keep their teams small, through a bonus pool, it would definitely result in smaller teams, but also with the danger of overworked ones. That seems self-fulfilling though, if you're overworked but you know there's a reward with it.

That all being said, most places don't have bonus pools so it's a mute point.