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.
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?