Why do people resent banker/trader bonuses?

Anton123

I have noticed that many people resent bonuses that traders working for investment banks make and would like to know why this might be. These bonuses are closely related to amount of profits they make for their firm so in theory they 'deserve' it.

But my take on the animosity towards them is probably due to these traders being in a win-win situation as they are free to 'play' large amounts of capital without a real fear because even losses only mean the worst that could happen is a firing. Another thing is they have at their disposal very power mathematical software and charts that pretty much make their decision for them on the entry and exit points of trades. And if they lose their job, they have on CV of previously working for a prestigious company.

geordie_joe

Anton123 wrote: »

But my take on the animosity towards them is probably due to these traders being in a win-win situation as they are free to 'play' large amounts of capital without a real fear because even losses only mean the worst that could happen is a firing.

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

I'd ask you to google "Rogue Trader", but Dan Penteado seems to have cornered the market in google results for that search term.

The worst that can happen is not a firing, it's you getting it wrong. And instead of just firing you, your bosses claim you did not have the authority to do what you did and you end up in prison.

drummer_666

a lot of people may take a new job, the pay is lower but the bonus bigger.

therefore their bonus is entitled, its part of the pay package.

clemmatis

Anton123 wrote: »

I have noticed that many people resent bonuses that traders working for investment banks make and would like to know why this might be. These bonuses are closely related to amount of profits they make for their firm so in theory they 'deserve' it.

Traders as opposed to bankers? They're paid commission, aren't they? I thought the main public concern was about bankers' bonuses added to already phenomenally high pay plus other rewards.

ElDavido

In the UK at least some banks have been given large quantities of money as a bail out to stop them crashing. Even in this quasi-nationalised state they still give bonuses despite massive public disapproval.

PeteW

If we're honest, it's mostly jealousy.

Ashles

Anton123 wrote: »

And if they lose their job, they have on CV of previously working for a prestigious company.

People in the industry know each other. Get fired for a huge mess up and it will be known. Having the prestigious company on your CV won't help you.

shmeeko69

Getting away a bit from the "Up Your Income" category with this question, but I think people have a good understanding that, the government bailed out the banking sector to the tune of £80b in 2008/09 and yet certain people are still being rewarded for doing a mediocre job. The trading sector has always had a generous bonus system and that is still the case to the present day.

Conclusion - Why should brokers and senior management get a huge bonus when the blue chip companies they work for could have been put out of business a few years ago, if it wasn't for the obscene bail out package with the taxpayers money? We are all now indirectly paying for those mistakes and it has led to the situation we're in today!

Mark :mad:

fawd1

I think the reality is that we all wish we could earn their money!!!! My brother does this for a living, and I would begrudge it, but I can't, because for the first 8 years of his career he worked at least 70 hours a week, left home at 5 am, got back earliest at 7pm and built his life around having no social life. So, yes, I'd love his money, but hey, he can be fired at the click of a finger, and he works harder and longer hours, and more pressure than most of us do. So, he's rich, but frankly, he deserves it!!

fluffpot

I think the reason most people feel a bit irked is that it sends the message that making money more important than, say, saving someone's life - you don't see doctors or nurses getting big bonuses do you?

wildman0609

to be honest its all jealousy isn't it?

people seem to be concerned with the fact the banks were bailed out. but would the government prefer their bail out money back in the form of 20% corporation tax if the banks don't give a bonus, or 50% income tax on the bonus.
As a tax payer i know what i prefer!!!

also hasn't RBS completely paid back its loan? or would the public prefer to overlook this?