The investment banks have it both ways on bonuses with their staff.
When times are good, the executive is paid a bonus or not depending on whether they do a good job. When times are tough, all bonuses drop, regardless of the performance of the executives.
Also when times are tough, if times look bad for the future, the situation at the moment, bonuses drop, just in case, and regardless of the great performance that may have just been produced.
While I understand it may be difficult to feel sorry for very highly-paid individuals, there is no reason to let their highly profitable employers off the hook.
Onésimo Alvarez-Moro
See article:
Wall Street bonuses may be the latest victim of the subprime mortgage collapse and the tight credit market. Over all, bonuses are expected to be flat to down 15 percent, according to compensation experts and Wall Street executives.
More than most years, the disparities between investment banks and among different divisions within the banks will be unusually large, these experts say. The swings reflect differing losses at the banks and the fact that some areas, like investment banking and stock trading, did very well, while heavy mortgage-related losses were concentrated in a small area where there are fewer and fewer employees to compensate.
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