The Bankers Bone Us

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

Managing and Interfering

Nick Edwards has written a very engaging autobiography that I recommend everyone to read. 

Edwards is a doctor in an A&E department at a General Hospital somewhere in the UK. The book discusses two main themes:

medical stories

management and interference stories

I enjoyed the book and reviewed it in full for my own web site: http://www.duncanwil.co.uk/book_reviews/edw.html

There are many business, management and even commercial lessons to learn in this book.

DW

Happy New Year

Dear All,

There aren’t many of you because I don’t post to this blog anywhere near as much as I want to. My resolution this year is to post here at least once a week.

Happy new year to you all anyway.

Duncan

Happy New Year

Dear All,

There aren’t many of you because I don’t post to this blog wnywhere near as much as I want to. My resolution this year is to post here at least once a week.

Happy new year to you all anyway.

Duncan