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Original poster

Bankers going to get their bonuses anyway

469 replies

jujumaman · 05/02/2009 11:07

here

I don't know what to think about this.

We have a friend who works at another bank that has been bailed out by a foreign govt. He was telling us this weekend that he's planning to sue because he may not get his promised bonus of £2m or so, and will "only" end up with his salary which is prob around 250k

I know bonuses are intrinsic to banks' cultures but how - in these god awful times - can £2m bonuses be justified. My friend says his was the only division of his bank which made money last year, so why should he be penalised for others' faults? My feeling is every taxpayer is being penalised for others' faults and someone who is still earning an excellent salary should graciously accept it and be grateful he still has a well-paid job. But my dh tells me I'm being naive and that bankers will carry on getting these vast bonuses just as before. Not convinced by arguments in article I've linked to. Anyone with more knowledge of the city than me like to defend my friend's position (I v much like him personally.

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HolyGuacamole · 05/02/2009 11:26

I don't believe that whilst the taxpayer is bailing out the banks, that the employees should be holding their hands out for bonuses. IMO the bailout is helping them to keep their very jobs, never mind bonuses.

I have a friend who has had her income cut by 20%, taking her to min wage status. To compare that to people getting bonuses for non-performance of their companies to the point of having to accept tax payers help is disgraceful. From the article "allowing bankers to share in the profits while never having to shoulder the losses." which has been partly blamed for the current financial climate.

If these bankers go to rival banks, then so be it. It say's lots about their loyalty and would perhaps leave vacancies for people who would appreciate having a nice job and the chance to work hard to improve the situation and then be rewarded with future bonuses.

Not saying people don't deserve bonuses, but just not at the moment and not in the banking industry.

ilovemydogandMrObama · 05/02/2009 11:31

It's really appalling. Pure greed.

But can't blame your friend, but rather the system or the government.

What should have happened is that with taxpayers money, the government should have stipulated various criteria, such as capping bonuses/salaries.

I don't begrudge people a bonus that has been earned, but if they are relying on public funds, then they have been bailed out.

TheCrackFox · 05/02/2009 11:32

Some of my friends (not in banking) have taken 10-20% pay cuts to stave off redundancies. Their companies are not getting their arse wiped by the taxpayer.

There should be no bonuses until all debts to the UK government are paid off in full. And I don't care if it takes 50 years or so.

thumbwitch · 05/02/2009 11:33

crapola system, typical of me me me prevailing culture. [grr]

sarah293 · 05/02/2009 11:34

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TheCrackFox · 05/02/2009 11:44

Gordon Brown should have stipulated strict terms and conditions before he gave the banking industry £150 billion. He really has been useless.

orangina · 05/02/2009 11:44

Any bankers out there who wish to offer a different opinion?

TheInvisibleManDidIt · 05/02/2009 11:48

I don't really understand how they can justify this either, but have just read this to DH, and he says the bonus is part of their contract. The have been doing their job, so they are entitled to their bonus whether the company [bank] is doing well or not.

Ultimatley it's the very top people that have (in his oh so eloquent words) fucked it up so they are the ones that should take the hit. So unless your friend is one one of the board he should still get his bonus.

onagar · 05/02/2009 11:54

"Gordon Brown should have stipulated strict terms and conditions before he gave the banking industry £150 billion"

I think he told is that he had. I can't find it now, but I'm pretty sure.

Merrylegs · 05/02/2009 12:01

"Anyone with more knowledge of the city than me like to defend my friend's position"

You cannot defend the indefensible.

Banker's bonuses are set to be capped at half a million.

Excuse me while I weep.

TheCrackFox · 05/02/2009 12:06

Onager, Brown told us that he "had abolished boom and bust economics" I wouldn't trust a word that comes out of his mouth. He is incompetent.

georgiemum · 05/02/2009 12:11

What a nice bonus. I worked in the City when there were years of NO bonuses for the drones as 'business was bad' (although I did see those higher up getting fat bonuses).

I can't imagine a job where you would be worth £2m. Curing cancer? Solving world hunger? Inventing a nappy that can't leak or smell? Being God?

I would have loved to be a fly on the wall during that conversation. Did you keep a straight face?

sarah293 · 05/02/2009 12:33

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georgiemum · 05/02/2009 12:44

Ah - but what job would be really worth £squillions? I don't think I could make that baking fairy cakes!

georgiemum · 05/02/2009 12:44

Ah - but what job would be really worth £squillions? I don't think I could make that baking fairy cakes!

Original poster
jujumaman · 05/02/2009 12:45

Fortunately the convo was with my dh - I was talking to his dw (who was telling me how she's booking holidays left, right and centre because there are so many bargains to be had right now).

I am used to them and their extravagant ways and have long trained myself not to feel jealous when I know all we can afford is a week at my in law's in Devon, as their hearts are in the right place. It's really hard to stay friends with people who have a lot more money than you and you have to just laugh about it and count your own blessings. Having said which, this left me pretty .

But then again, he was promised it, and his division was in profit last year. And he will be taxed on it so that will go back in the economy. And he and his wife are singlehandedly keeping the travel industry alive ...

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MadameCastafiore · 05/02/2009 12:46

Here we go again!

MmeLindt · 05/02/2009 12:53

My DH is facing a pay cut of 5%, no bonus after this year so another 17%. He is in private sector so the company are not getting any government bailouts and are talking of 20 000 redundancies.

Banks that have received money from the government should not be allowed to pay huge bonuses. I can accept the branch staff getting their bonuses as they are not the ones who made the mess, but there should be a cap of say, £2000 on bonuses.

EldonAve · 05/02/2009 12:56

I think it's understandable for your friend to consider suing
No doubt he'll be looking for a new job anyway

georgiemum · 05/02/2009 12:58

But surely the whole thing about the mega-salary-and-bonus boys (and girls) is that they know that the industry is very cut throat, so rewards are increadibly high.

TheFallenMadonna · 05/02/2009 13:01

But wasn't your friend saying he wasn't going to get his bonus?

Original poster
jujumaman · 05/02/2009 13:06

Yes, it looks like he won't get the bonus as the govt who's bailed them out (not British) is taking an undestanably dim view.

.

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LadyMuck · 05/02/2009 13:07

Dh's company hasn't been bailed out by the taxpayer and he got his bonus. It is a tricky one though because the bonus is part of the salary package. Dh wouldn't have gone for that job just for the base salary. I can see why people are offended by the size of the bonuses. But Dh hasn't caused the recession. There is a market value for his skills which so far hasn't changed significantly. There is potentially more competition for his job, but not so much that has changed the salary dynamics.

OrmIrian · 05/02/2009 13:08

I'm not going to get any bonus this year. It's usually nearer 1k but it pays for our summer holidays. But not a sausage this year. And I haven't dropped any major clangers nor has the tax payer had to bail my employers out. It does seem daft to pay up in the circs - surely a bonus is just that, a bit extra as a thankyou for hard work and good results, not an accepted official part of the salary. Otherwise it would be called 'salary' surely. Not guaranteed.

Original poster
jujumaman · 05/02/2009 13:11

Ladymuck

How are these salary packages worked out then? Why call it a bonus if it's guaranteed - why not just integrate it into the basic salary? Most people would defie a bonus is something you're given as a reward after a good year, not an inviolable right, so the terminology is very confusing.

From one who wishes she understood these things and could have gone into the city and now be about to get my £2m handout.

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