Some of the banks are under said to be under lot of trouble because of the subprime crises and they are going to every possible source of investment in the world (Sovereign funds in middle east, Government fund from Singapore and banks from China) but it seems that it is not a big problem for the employees of the banks, they don’t seems to care about what is happening to rest of the economy. President Bush calls for economy kick-start with $145 bn package to help the economy but banks are bothered when giving salaries and bonus to their employees.
Merrill Lynch losses billions of dollar in the investments suggested by these financial chaps Q4 financial summary on the website of the banks tells some other story. Salary and bonuses of the employees have increase by 32% (from $3298 mln to $4339 mln for Q4). Raise is 8% for JP Morgan Chase. Case is same for Citi Bank or UBS, only raise differ in percentage term.
How these big salaries and fat bonuses can be justified. In fact, in the last couple of years when the share market was booming all around the world, these finance executives have earned fat bonuses. They have earned so much that they can go to nice beaches of the world for their rest of the life. On an average banks executives have got $350,000 in last year when their banks lost around $274,000 per employee.
Whole debt market is facing turmoil and it can be said that it was an isolated incidence in the mortgage market that has caused all the crisis but they need to keep the talented employees to run the bank so they need to give them bonuses. Economists talk about personnel economics and efficiency wages, it seems they need to go back to library and write new theories of economics.
Merrill Lynch losses billions of dollar in the investments suggested by these financial chaps Q4 financial summary on the website of the banks tells some other story. Salary and bonuses of the employees have increase by 32% (from $3298 mln to $4339 mln for Q4). Raise is 8% for JP Morgan Chase. Case is same for Citi Bank or UBS, only raise differ in percentage term.
How these big salaries and fat bonuses can be justified. In fact, in the last couple of years when the share market was booming all around the world, these finance executives have earned fat bonuses. They have earned so much that they can go to nice beaches of the world for their rest of the life. On an average banks executives have got $350,000 in last year when their banks lost around $274,000 per employee.
Whole debt market is facing turmoil and it can be said that it was an isolated incidence in the mortgage market that has caused all the crisis but they need to keep the talented employees to run the bank so they need to give them bonuses. Economists talk about personnel economics and efficiency wages, it seems they need to go back to library and write new theories of economics.
Good for people to know.
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