December 13, 2012 in Daily Bulletin
As bonus season comes around, Kevin Roose wrote an article that is likely to be rather unpopular as America continues to limp on after its financial crisis:
- While Wall Street bankers are paid too much, if they’re going to be paid a high amount then bonuses are the best way to do it.
- It’s good for banks because they can adjust the compensation given to employees based on performance in that year. In a bad year they can quickly cut costs without having to fire employees.
- As much as bankers might be hated at the moment they play an important role in the economy, and it’s bad for everybody if they are fired. It is estimated that for each financial service job lost in New York City, two non-financial jobs are lost as well.
- Bonuses might also be better for the economy. By getting a one-time lump sum payment bankers might be more likely to spend it all – putting it back into the economy – rather than if they had received it in standardized amounts over the year.
Read more about bonuses and some implausible alternatives over here.
Source: New York Magazine