Philosophy over coffee

Archive for February, 2009|Monthly archive page

My two-cent on the billion-dollar compensation debacle

In Headlines on February 5, 2009 at 8:56 am

I don’t have a problem with big bonuses. Excessive as the bankers’ bonuses may be, a management that runs a rather profitable business has the right to have its share of financial reward. The way businesses run is this: labor is compensated on a generally fixed rate and any outstanding result is typically greeted by bonuses.  These bonuses are apparently contingent on how profitable the firm has been for a period.  The clamour for a cut on the compensation of bank executives who dared take excessive risk on derivatives, only for those actions to backfire and drag their firms, the global economy, and the populace down a deep abyss is completely understandable.  When they see executives spend million of dollars renovating their offices, which are probably more than conducive for work to begin with,  while they get laid off and lose their source of income just triggers an emotional outburst.  Read the rest of this entry »