bonus
Just watched Jon Stewart’s tirade against John Thain. I agree that Thain’s 1.22 million office-decorating fee is a little wee bit on the excessive side (understatement of the year), but I disagree with Stewart’s opinion on bonuses.
It’s true that a lot of average Americans (yours truly and her spouse included) get no bonuses this year. But, unfortunately, we’re little minions with no real skills / contribution to our respective company. In other words, we’re pretty much replaceable by the next qualified joe on the street. On the other hand, those people whom Thain gave bonuses too – I suspect – are key players in the company who might be able to get ML back on its feet. Remember that actually there are certain parts / sectors in ML that made profits in 2008, even though too small to cover up the huge loss it made in the mortgage mess. The smart people in this sector are sure to want to jump ship and work for, say, GS or JPM or the numerous hedge funds out there, because they don’t want the risk of getting pink slips in the future. So, I suspect that Thain was trying to prevent the inevitable brain drain from happening by "bribing" these top players with bonuses.
However, he forgot to consider the "let’s hate on those greedy Wall Street bankers" mood that currently prevails. The public demands Wall Street to tighten its belt and share the pain/suffering with everyone else. That’s just naive and Wall Street will still be its own world with its own rules and reality.
What can you say? shrug shoulders
- ramblinite | Time: 6:35 pm (UTC+8) No Comments »
