Obama to cap bankers bonuses

BlondeHeadOn

From link here:

http://www.bbc.co.uk/blogs/thereporters/robertpeston/

"In the land of the brave and the home of the bonus, the new US president is about to impose a ceiling on the pay of executives in private sector companies that are rescued by the state.
That ceiling, according to overnight reports, will be $500,000 (around £350,000) - or $100,000 more than President Obama receives.
In the US, reports of the substantial bonuses paid to executives in banks propped up by taxpayers have been incendiary.
The impression has been created that top bankers are partying on their private jets while taxpayers foot the bill - and while millions of ordinary Americans lose their jobs and homes.
.....
The market for talent is - of course - global. Or at least that's what big UK companies say when gilding the remuneration packages of their senior execs.
So it will be pretty tricky for the British government to ignore the new US norm for running a semi-nationalised business.
At the moment, those running banks in receipt of massive financial support from taxpayers - Royal Bank of Scotland, Lloyds Banking Group and Northern Rock - are earning multiples of £350,000 a year.
The justification is that they're cleaning up a mess created by others.
But if the ratchet on pay over the past few years was upwards only, well, gravity has reasserted itself.
Those running banks or car manufacturers or any business which would fall over in the absence of funding from taxpayers will probably have to take much of their reward in the form of the nice warm glow that they ought to feel for doing their public duty - and defer the bonuses for a year or five."

fatpig_2

Pity we couldn't hang, draw and quarter them.

evenasus

fatpig wrote: »

Pity we couldn't hang, draw and quarter them.

Hear hear

Count_Dante

It is only by paying such huge bonuses that banks are able to employ such bright people, and in turn make huge profits for shareholders.

:rolleyes:

Generali

BlondeHeadOn wrote: »

From link here:

http://www.bbc.co.uk/blogs/thereporters/robertpeston/

"In the land of the brave and the home of the bonus, the new US president is about to impose a ceiling on the pay of executives in private sector companies that are rescued by the state.
That ceiling, according to overnight reports, will be $500,000 (around £350,000) - or $100,000 more than President Obama receives.
In the US, reports of the substantial bonuses paid to executives in banks propped up by taxpayers have been incendiary.
The impression has been created that top bankers are partying on their private jets while taxpayers foot the bill - and while millions of ordinary Americans lose their jobs and homes.
.....
The market for talent is - of course - global. Or at least that's what big UK companies say when gilding the remuneration packages of their senior execs.
So it will be pretty tricky for the British government to ignore the new US norm for running a semi-nationalised business.
At the moment, those running banks in receipt of massive financial support from taxpayers - Royal Bank of Scotland, Lloyds Banking Group and Northern Rock - are earning multiples of £350,000 a year.
The justification is that they're cleaning up a mess created by others.
But if the ratchet on pay over the past few years was upwards only, well, gravity has reasserted itself.
Those running banks or car manufacturers or any business which would fall over in the absence of funding from taxpayers will probably have to take much of their reward in the form of the nice warm glow that they ought to feel for doing their public duty - and defer the bonuses for a year or five."

I'll believe this when it happens quiet frankly. An announcement and a working law are very different things.