Author: Kim Beasley
While watching the evening news on October 28, 2008, I found out that some of the money from the bailout would be used to pay bonuses to employees who work on Wall Street. Now I’m all for receiving bonuses for work well done but a 6 figure bonus is a little bit too much to take right now with the way that the economy is going and the performance of stocks.
As reported by TIME.com, the following numbers for bonuses really amazed me:
- A managing director at an investment bank, a title typically earned around eight years on the job, will receive a bonus of $625,000. That’s down from nearly $1.1 million last year, but it is still 15 times the income of the average American household.
- Top bankers could receive as much as $1 million.
- Even a bond trader just out of business school could see his or her bank account enriched by as much as $170,000 this Christmas.
It seems as though the bad performance of those working on Wall Street is being rewarded. When working in Corporate America, the biggest bonus I earned after becoming vested was 4 figures which was pretty good back in the 90’s.
As a small business owner, being able to receive a bonus like this would be great. But since I don’t have an immediate tie-in to Wall Street, I too like so many others have to sit back a watch my tax monies pay for someone else’s failure. Business is business and what I see happening with the bailout money on Wall Street is just not sitting well with me.
Video resources:
New article resources:
- Firms still setting aside billions for bonuses
- Despite Turmoil, Wall Street Bonuses Survive
- Eight ways the Wall Street bailout is adding insult to injury
So how do you feel about this application of the bailout monies?
Similar Posts:
 |
Simple Steps for Starting Your Home Based Business by: Amrou Sukhon Now that you have made up your mind, to set up a home based business. Wonderful... |
|
Business Makeover: Are Your Business Processes in Order? I'm excited to talk about business processes because I have over 15 years of experience as a technical... |
|
Business Makeover: Are You Checking Yourself? Today's focus is going to be on checking up with my progress and seeing if I am on target with my checklist.... |
Posted in Business Tips
It is another fleecing of America if you ask me. I blogged (http://www.tenacioustitans.com) about the enormous salaries that CEO’s make even when a company fails…it’s all relative. But can you blame the one’s making all of that money? Not in my opinion. If someone wants to give me a huge bonus, I am not going to turn it down.
I agree there is something intrinsically wrong with the way bonuses
get paid despite a company’s performance. I know that if my business
does poorly, I don’t get paid. The problem is the solution as I
don’t see one I am comfortable with. I am very leery of government
dictating what someone should get paid and I don’t want the U.S. to
lose competitiveness and ultimately jobs if top talent goes overseas.
There has to be some way to introduce a market based approach that
better incorporates shareholder concerns.
Both of your responses are good and thanks for sharing. It’s as though we have six eggs in one hand and half a dozen in the other. I would hope that a solution that is more equally balanced is suggested. I think it would go over better with the American public.
This is a bad economy and I’m not really sure how we can get out of it
without sacrificing bonuses and probably increased taxes. I’m not
really sure why people get so insensed about taxes when we are
perhaps sliding into a depression but that’s just ME. MY little tiny
company, my little tiny full time job, eliminated bonuses AND
raises for the next 2 years across the board. So tell me, why can’t
wall st do some of that for one year? Are you telling me traders
wouldn’t produce profits in that case?
I actually was opposed to the bailout, mailed my congressman, who
naturally sent a letter back detailing why he WAS NOT to blame, and
blaming it all on his opposing party. Enough with the blame game, it’s
going to take every thinking person we have in government,
sacrifice and lots of time to fix this.
That’s my opinion. The politics of hate and control are over.
People need jobs, healthcare, gas in the tank and food on the table,
not hysteria. But I’m just one mom with 2 jobs and an unemployed
husband and sketchy healthcare, who am I to say…
So let me get this right. The people that got everyone into this mess are the ones that are getting the biggest rewards? How does that even make sense? Oh wait a minute – it’s because it comes in the reign of George W. Bush – the man who made failing an art form.
Absolute craziness, Kim – thanks for bringing this to our attention.
Danny Browns last blog post..Why LEGO Should Have Trademarked Social Media