'Should bankers' bonuses be stopped?' poll discussion

keet83

why should they get big bonuses for making or saving money when they already get paid enough, they are just getting a bonus for doing their job right?

i dont get a bonus if i sell more products through out the year making more money for the business because thats what i am paid to do

eagle_eye

I think it's all about contribution. If you contribute significantly towards the bottom line profit then you should be entitled to a share of the rewards, either via pay, bonus or a combination of the two.Including a bonus element though keeps everyone on their toes, especially those who are more motivated by financial gain. The problem is that these bankers have been rewarded for short term gains that have not been beneficial in the long run and that is misguided and will not benefit the company.

I think there has been a knee jerk reaction to the bonuses and I don't think they should be banned or stopped. I would suggest that they held in a seperate account for at least 3 years and paid out when the actions have been shown to generate a profit. Additionally the bonuses should be set off against each other so that if you do well one year but poorly the next the first one is reduced accordingly.

We need a flourishing financial sector, after all what else have we got?

Mini_Bear

Im with option B. If the company has not been bailed out by the Govt let them pay their staff what they want. if someone wants a bonus, get into the financial sector. if you want staff discount, get into the retail sector and if you want job satisfaction go self-employed!

bap98189

The only reason the banks were bailed out was because these businesses had ordinary people's savings. What needs to happen is for standard banking (savings, mortgages etc.) to be entirely seperated from investment banking. Then if an investment bank messes up and goes under, it can be allowed to do so like any other business would.

golddustmedia

In my working history a bonus was an unexpected special payment for exemplary work above and beyond what was expected. Even then typically a max of 1 or 2 weeks normal wage.

Given the recent performance of the banks I wouldn't have thought any of them deserved a bonus!?

As for the comment in the press that many senior bankers only do the job because the bonus on top of the salary makes the position viable. Well the obvious answer is that if the standard salary for the job isn't enough for you then get a different job!

Having a bonus system where the bonus is more than the annual salary is just ludicrous!

djhworld

The problem really isn't bankers bonuses - the problem is short-term reward for work that can backfire long after said banker is in the maldives enjoying his retirement at 28.

Long term rewards are what is required, give the banker £100k a year in bonuses and there's no motivation to protect against risk.

Give him a £1million after 10 years of good, profitable service? Sounds about right to me

voiceofreason

craigbass wrote: »

I Have had to take a 25% pay cut or lose my job. I still have to work about 10-14 hours per week overtime unpaid.

You made your choice, then?

Dewpoint

In view of what went wrong over the past 18 months in the finance sector, I firmly believe that banks should revert to the things they do best, boring but important domestic savings & loans. I also believe that there should be a much stricter limit on the size of banking firms in the same way that there is a limit on the other big industries in the UK (e.g. aviation, supermarkets etc). The government should also insist that the riskier investment arms are completely (financially and managerially) independent of banks so that they live or die at their own risk, with money from private investors and not expect the taxpayer to bail them out.

PhiltheBear

The real answer depends on who the 'banker' is. If it's someone like Fred the Shred then No! He simply made so little actual earning contribution to the bank that giving him a huge bonus because the bank made a profit is crazy. On the other hand if a dealer makes millions of pounds profit for a bank through his skill then rewarding him with a percentage of that is fine. Indeed, if the bank doesn't do so he'll simply go to a competitor who will.

And that's the problem. Banking is a global industry. Ban bonuses here and the banks will simply set up operations on some tax-avoidance island. That means that the money that currently passes through London will pass elsewhere. Most banks already have such contingency plans in place. Some have already threatened to move their operations. Who will lose? Us. We'll lose the tax income and the investment.

People who decry bankers bonuses are simply jealous. If they were capable of earning them they'd be first in the queue for a job.

toshkininny

let them have their bonuses, but they have to sponsor a person who has been made redundant, and who has been looking for a job for six months + just to realise how lucky they are.