Thanks to PK Munro for the inspiration for the title of this post!
The RBS, OUR bank, was ready to shell out millions of Pounds in bonuses in spite of the fact that they seem not to have been earned and were among the least popular things to have done in recent weeks.
These people took jobs whose aims must have been to build and rebuild the bank: their normal duties. These people took jobs KNOWING that the bank is essentially a public sector bank and public sector people do not normally earn private sector bonuses.
I heard this morning that the contracts of these people are in the public domain but I have to say that I have not looked for them and have not read them. However, I would have liked one or more journalists and/or politicians to have set out the terms in these people's contracts that have triggered the potential for the bonuses that had been announced.
The most important thing for everyone to appreciate is that we need these banks to be planning for LONG TERM stability and prosperity. So if there are bonuses paid in three or four years' time then no one will object I think.
Paying bonuses in shares, however, is a bad idea as share prices rise over time, on average: this means that even if the bankers do a poor job the shares they are awarded will be worth a lot more in a couple of years and they will be paid a bonus far in excess of the merit of their recipients!
More nonsense from the banking world
Duncan Williamson
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment