The bonus culture

Posted by Janice McGinn in on Mon, 09/11/2009 - 10:45
  • Bonuses are definitely back
  • The discussion is so much hot air
  • UKFI is walking a tightrope
“Bonuses are very definitely back, and there’s a very strong reaction against them, but I think the financial service sector does rely very heavily on them and the debate is not about getting rid of them, it’s a question of the management of bonuses; in other words, ensuring they are attached to the right performance criteria, that they’re not excessive, do not distort risk-taking and possibly caps", said The Work Foundation’s Stephen Overall.

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What are your top business challenges today?

2009-08-12 14:53 - 7867 reads
Getting through to 2H 2010
7% (5 votes)
Planning strategies for growth after the recession
14% (10 votes)
Keeping down costs
30% (21 votes)
Raising capital and credit
6% (4 votes)
Maintaining a healthy cashflow
43% (30 votes)
Total votes: 70

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The Bottom Line:If Mr Cable has his way...

"If Mr Cable had his way, all the big banks would be broken up and bonuses would be virtually eliminated - a sure-fire way in my view of guaranteeing an end to the UK’s ability to compete as an international financial centre. Let’s not forget that this is a man who is on record as saying that everyone who works in a bank has an ‘aristocratic lifestyle’ clearly demonstrating his lack of understanding of the sector." A tough line on bankers’ bonuses could make a brain drain of financial talent a distinct possibility, warns Paul Marsden. Read more

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