Banks

davidflies

War Hero
Book Reviewer
#1
I don't know about the rest of you but I read yesterday that Diamond got £100 MILLION pay in his last 7 years at Barclays. Further he is supposed to get another £20 mill for quitting.
I was so bloody angry when I read thais I forgot to get the petrol discount at Morrisons!
How can anyone who presides over what looks like (read: apparently) a major misapplication (left out the "F" word out of respect for the legal people) of banking ethics (???)...
I'll stop, I'm fed up with phrasing this so that I don't get done for libel.
 

jarrod248

LE
Gallery Guru
#2
I don't know about the rest of you but I read yesterday that Diamond got £100 MILLION pay in his last 7 years at Barclays. Further he is supposed to get another £20 mill for quitting.
I was so bloody angry when I read thais I forgot to get the petrol discount at Morrisons!
How can anyone who presides over what looks like (read: apparently) a major misapplication (left out the "F" word out of respect for the legal people) of banking ethics (???)...
I'll stop, I'm fed up with phrasing this so that I don't get done for libel.
Don't you dare say nasty things about my sugar daddy. I think you'll find he's very generous for little effort. I love how he cums quickly when I finger his saggy hoop and call him Shirley.
 
#5
Did CGS resign after Gary Bartlan was found guilty of abuse?

So then your angered by the absolute amount he got paid. Is that because it's a public company or again just the absolute amount?

People don't seem to be angry about Richard Brandson's billions he pays himself in tax efficient dividends from private companies.

If you don't like high compensation in public companies, write to your pension fund manager saying you want him to vote down generous remuneration, go to the AGMs of any share investments you have, and vote for the communist party of the UK if you really feel strongly about it.

Shareholder activism like the above has started (in the last 3 months) and it's working - pay is starting to materially come down.
 

TheIronDuke

ADC
Book Reviewer
#8
I was so bloody angry when I read thais I forgot to get the petrol discount at Morrisons!
If you kept the till receipt you can take it in next time, give them your Morrisons card and they will input your points by hand.

I'll stop, I'm fed up with phrasing this so that I don't get done for libel.
Hmm. Yes. Libel is a major concern. Particularly when dealing with Bob Diamond. The thieving fucking Septic cunt who was CEO of Barclays Bank until the child molesting murdering drug smuggling nonce twat got done for plotting to drop a yellow-cake dirty bomb on HM The Queen when she opened the London Olympics 2012... get your child porn here from Bob Diamond ex-CEO of Barclays two for one while stocks last.

There you go Dave. Now you can tell us what you think.
 
#9
TheIronDuke are you insane? No really!

Think about this.

Bob Diamond and the Queen are really, really good friends.

I mean she's giving out the Diamond Jubilee medal this year!
 

Wordsmith

LE
Book Reviewer
#10
If you don't like high compensation in public companies, write to your pension fund manager saying you want him to vote down generous remuneration, go to the AGMs of any share investments you have, and vote for the communist party of the UK if you really feel strongly about it.
Here's a link to a research paper in behavioural economics.

http://web.duke.edu/~dandan/Papers/Upside/largeStakes.pdf

The authors argue that if the bonuses get too big, it distorts judgement. (My bold)

The experiments we report address the question of whether increased effort necessarily leads to improved performance. Providing subjects with different levels of incentives, including incentives that were very high relative to their normal income, we examine whether, across a variety of different tasks, an increase in contingent pay leads to an improvement or decline in performance. We find that in some cases, and in fact most of the cases we examined, very high incentives result in a decrease in performance. These results provide a counterexample to the assumption that an increase in motivation and effort will always result in improved performance.
While I am aware that the roots of the banking crisis are complex, I can entirely buy the argument that if you make the potential bonuses too high, people will take exceptional risks to get them.

If a banker is worth £10 million a year, pay him £8 million basic salary, with a potential £2 million in bonuses. If he's not worth £10 million a year, why are you giving him the opportunity to earn huge bonuses?

Wordsmith
 
#11
Wordsmith, I've no problem with that argument. I would think though at some point the inelastic relationship breaks down: if you're wealth is $200mm do you really care if you get paid $8mm or $11mm? I think the most pertinent point is the misalignment of interests of the individual vs the firm when there's high remuneration on offer vs relative wealth of the individual.

I was interested in where the OP's ire came from. Was it the remuneration for what appears to be a utility, publicly traded, or just the absolute amount?
 

mercurydancer

LE
Book Reviewer
#12
If you kept the till receipt you can take it in next time, give them your Morrisons card and they will input your points by hand.



Hmm. Yes. Libel is a major concern. Particularly when dealing with Bob Diamond. The thieving fucking Septic cunt who was CEO of Barclays Bank until the child molesting murdering drug smuggling nonce twat got done for plotting to drop a yellow-cake dirty bomb on HM The Queen when she opened the London Olympics 2012... get your child porn here from Bob Diamond ex-CEO of Barclays two for one while stocks last.

There you go Dave. Now you can tell us what you think.
You forgot to post the youtube link of Bob Diamond breaking kitten's spines and setting them on fire, laughing whilst they try to extinguish the flames with their poor tongues.
 

Wordsmith

LE
Book Reviewer
#13
I think the most pertinent point is the misalignment of interests of the individual vs the firm when there's high remuneration on offer vs relative wealth of the individual.
There are two things that I've always been puzzled about with respect to the bonuses, which I believe often come out at between 25% - 50% of the banks operating profits.

Shareholders: why aren't they more active in scrutinizing the level of bonuses? After all, what's not paid in bonuses becomes available for distribution as extra dividends or as reinvestment into expanding the bank's activities. Too high a percentage of bonuses paid out is surely detrimental to the banks long term growth.

Customers: I can never understand why the big corporate customers don't push harder for reduced prices from the banks. The levels of bonuses paid to (say) investment bankers must surely suggest to those companies that there is room for a cost reductions in underwriting fees, etc.

Wordsmith
 
#15
Don't you dare say nasty things about my sugar daddy. I think you'll find he's very generous for little effort. I love how he cums quickly when I finger his saggy hoop and call him Shirley.
Shirley not, jarrod. The image is just too repulsive .... er, is he tied up at the time?
 
B

bokkatankie

Guest
#16
There are two things that I've always been puzzled about with respect to the bonuses, which I believe often come out at between 25% - 50% of the banks operating profits.

Shareholders: why aren't they more active in scrutinizing the level of bonuses? After all, what's not paid in bonuses becomes available for distribution as extra dividends or as reinvestment into expanding the bank's activities. Too high a percentage of bonuses paid out is surely detrimental to the banks long term growth.

Customers: I can never understand why the big corporate customers don't push harder for reduced prices from the banks. The levels of bonuses paid to (say) investment bankers must surely suggest to those companies that there is room for a cost reductions in underwriting fees, etc.

Wordsmith
Underwriting fees have come down dramitically post 2008, that is one of the reasons margin is being pushed so hard from other investment banking activities, look to JP Morgan as an example of this.

Another reason for the fees coming down is the the increased competition in the market, to an extent they have shot thier own golden goose, so many banks saw the opportunity for making the big bucks, now there are too many in the market.
 

davidflies

War Hero
Book Reviewer
#17
Now ±I'm more worried that Jarrod didn't get his copy of Stumpy - and I don't get any bonuses at all!
As for my pension manager - we all know who that is - HMG - thst' why I have to keep working at the age of 70!
 
#18
Wordsmith I agree on shareholders but less so on customers - the banking sector is an oligopoly. Less but better worded regulations would allow easier regulator oversight and improve competition by reducing barriers to entry.

Now ±I'm more worried that Jarrod didn't get his copy of Stumpy - and I don't get any bonuses at all!
As for my pension manager - we all know who that is - HMG - thst' why I have to keep working at the age of 70!
Ah well you see my advice would be to write to Mr Osborne, the ultimate pension manager but as every chancellor robs Peter to pay Paul there's no actual investment pot to manage!
 

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