Sunday, February 18, 2007

Bonus Time

I understand the furore over the City bonuses is all about the politics of envy, but this quote made me mad.

Another Left-wing Labour MP, Alan Simpson, backed the survey's findings but said that Mr Brown was just as responsible as Mr Blair when it came to promoting divisive policies.

He said: "There is no difference between No 10 and No 11. Downing Street has pursued policies which have courted City financiers at the expense of everyone else. Financial services and the money markets are engaged in a greed-fest - and Treasury rules are actually making this possible. Many of these huge bonuses are actually rewards for failure."

Is he serious ? Does he actually think the banks are in the habit of giving out large quantities of cash to non-performers ? I guarantee you every single one of those 4,200 people receiving over £1 million made at least ten times that for their organisation. You pay the going rate or they leave and take the business with them - end of story. Non-performers make money or are fired.

Yes, I do work for an investment bank and yes, I did get a nice bonus this month. Not a seven-figure one obviously, but then I'm not a revenue generator. However, I did feel it was payback for the many months of late nights and weekends I slogged through last year. And do I begrudge the guys on the trading floor their wedge ? Not bloody likely, those guys work as hard as we do, and they make the money for our bonus pot. And the 73% of the population who think bonuses are 'excessive' should remember that the profits those people make mostly go to the shareholders, and that the banks are 90% owned by the pension companies, and the pension companies' returns go to....who exactly ?

So go on, allow Gordon to windfall tax the bonuses away and send the business to Frankfurt - you'll be slitting your own throats you idiots...but then that's how socialism works isn't it.

1 comment:

Phill said...

I particularly liked the comment that we shouldn't have bonuses at all. What a brilliant idea, you'd remove motivation and feed corruption in one fell swoop.

Yes those bonuses are huge but all I think is that I wouldn't mind one that big myself.

The only kind of wealth that irritates me is the likes of Jade Goody who seem to be rich for being stupid and common.
Or Premiership footballers who squander their ridiculously high salaries (paid for by the supporters) on shit clothes, cars they can't drive properly and card games.

At least when you hear someone in the banking industry has earned some money you know they're unlikely to piss it all away.