It wrong, it doesn't work, and is illegal and immoral.
And, whether or not you agree that it's torture, if it's what we are doing to our enemies, why would you even think about doing it to an employee?
Tribune: Company used waterboarding to motivate workers
I mean, really? What made you think this would work?
Oh and my favorite part of the article is the first sentence:
A supervisor at a motivational coaching business in Provo is accused of waterboarding an employee in front of his sales team to demonstrate that they should work as hard on sales as the employee had worked to breathe.
Now, either the tools they use are ineffective if they fail to motivate their own sales team, or Prosper will be adding the waterboarding package to their deals soon.....