It's Bonus Time Again

It's that time of the year again. I mean the time when banks and other financial institutions pay out their staff bonuses. On TV at lunch time today, Prime Minister, David Cameron said that banks should "exercise restraint" and show social responsibility in the handing out of bonuses. Fat chance there is of that happening. We know already that they will pay out buckets of money as usual. Figures were announced today by Goldman Sachs - an organisation as likely to exercise restraint as I am likely to land on the planet Jupiter. The miserly sum of $13,000,000,000 has been allocated to fund the total remuneration packages this year for their staff [world-wide] of 35,400. This gives us the princely sum of $367,000 each - on average. Obviously the Masters of the Universe will get much above the average and the tea lady may have to get by on $50,000 but overall they will be paid, on average, ten times as much as the average wage earner in the USA or Britain. I am sure they are worth it. At least, they are worth this much just as any other investment banker or financial whizz kid is worth this much. Governments will issue forth exhortations, but when will they do something. It has to be a co-ordinated attack throughout the world to stop them paying themselves these obscene sums. One thing which is absolutely essential is - as the governor of the Bank of England has said - to separate investment banking and allied jiggery-pockery from normal clearing banks. Then if the investment banks go bust, we can let them. One problem is that bankers have glorious lobbying organisation and always stop governments interfering with their freedom to do as they dam well please.

Soon other banks will tell us how much is being spent on bonuses. But will they please stop talking about bonuses as if they were rewards for spectacular performances. Bonuses are part of the wage structures and get paid to everyone who bothers to turn up in the mornings. Because so many outsiders have been moaning about bonuses some institutions have acknowledged the truth and have deliberately doubled salaries and abolished the word "bonus".

During the next few weeks we can expect many politicians complaining about the bonuses, as they will next year and the year after if nothing gets done.

Don't hold your breath!
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