Unbelievably, when I saw the first half of this headline, I thought “what? A push towards *some* kind of moderation?” What a fool I am.
Before r/UK starts frothing – the bankers bonus cap was not about limiting pay, it was only to limit risk-taking. The scrapping of this doesn’t mean that bankers will suddenly get paid more just that the composition of bonus and salary changes; most won’t have any change at all given that the cap was 2x salary.
If the bankers the bonuses the bankers the bonuses the bankers the bonuses it’s disgusting…and secondly, if the Tories were really serious about it they’d tax the bankers the bonuses the bankers the bonuses at 90 per cent
Thank goodness for that! Now they can trickle down onto me. Can’t they? Jeremy? Rishi? Where’s me trickles? I wants me trickleses 😵💫
Why would you limit something that’s taxed at 45% and instead just encourage avoidance and moving jobs abroad….
So short sighted, politics of envy.
The rich get richer yet the very poorest have a frozen tax-free allowance despite a period of massive inflation
Fuck the Tories.
Can someone explain to a non brit How much do top bankers actually earn in London?
I was so worried about those poor starving bankers.
what a great way to sum up the Brexit con, im shocked the BBC even mentioned Brexit in the article.
It’s the right decision probably. Bankers will get paid whatever they get paid regardless of the rules. If bonuses are capped then the salary will just be bumped higher. It’s arguably better to pay more in bonus than in salary as it lets banks be more flexible in cutting comp when times are tough. If comp costs are fixed (ie in salary) then it’s more likely they’ll need to make redundancies.
TLDR; the cap has no bearing on how much overall compensation bankers get paid
Meanwhile my sector (professional engineering, at multiple major employers) hasn’t really had bonuses for nearly a decade now, not least because of bankers fucking the economy.
So this was to reduce risk taking, the risk taking is still there, but the bonus being capped meant you risk less because anything over that is well pointless.
It stopped chasing, now it will be back.
Remember, bonuses are the best cost-saving initiative banks have.
Now all that happens is you have less negotiating power over salaries as before bankers would demand higher base salaries to compensate for the bonus cap. Now you will see salaries being less competitive. Furthermore, its not like you always get the max bonus, its quite rare and depends on a multitude of factors as we have seen the last years where bonuses were low/non-existent and many jobs getting axed.
16 comments
Unbelievably, when I saw the first half of this headline, I thought “what? A push towards *some* kind of moderation?” What a fool I am.
Before r/UK starts frothing – the bankers bonus cap was not about limiting pay, it was only to limit risk-taking. The scrapping of this doesn’t mean that bankers will suddenly get paid more just that the composition of bonus and salary changes; most won’t have any change at all given that the cap was 2x salary.
If the bankers the bonuses the bankers the bonuses the bankers the bonuses it’s disgusting…and secondly, if the Tories were really serious about it they’d tax the bankers the bonuses the bankers the bonuses at 90 per cent
Thank goodness for that! Now they can trickle down onto me. Can’t they? Jeremy? Rishi? Where’s me trickles? I wants me trickleses 😵💫
Why would you limit something that’s taxed at 45% and instead just encourage avoidance and moving jobs abroad….
So short sighted, politics of envy.
The rich get richer yet the very poorest have a frozen tax-free allowance despite a period of massive inflation
Fuck the Tories.
Can someone explain to a non brit How much do top bankers actually earn in London?
I was so worried about those poor starving bankers.
what a great way to sum up the Brexit con, im shocked the BBC even mentioned Brexit in the article.
It’s the right decision probably. Bankers will get paid whatever they get paid regardless of the rules. If bonuses are capped then the salary will just be bumped higher. It’s arguably better to pay more in bonus than in salary as it lets banks be more flexible in cutting comp when times are tough. If comp costs are fixed (ie in salary) then it’s more likely they’ll need to make redundancies.
TLDR; the cap has no bearing on how much overall compensation bankers get paid
Meanwhile my sector (professional engineering, at multiple major employers) hasn’t really had bonuses for nearly a decade now, not least because of bankers fucking the economy.
So this was to reduce risk taking, the risk taking is still there, but the bonus being capped meant you risk less because anything over that is well pointless.
It stopped chasing, now it will be back.
Remember, bonuses are the best cost-saving initiative banks have.
Now all that happens is you have less negotiating power over salaries as before bankers would demand higher base salaries to compensate for the bonus cap. Now you will see salaries being less competitive. Furthermore, its not like you always get the max bonus, its quite rare and depends on a multitude of factors as we have seen the last years where bonuses were low/non-existent and many jobs getting axed.
Something something inflation something wage rises something something inflation
ITT: A lot of people don’t understand investment banks.
Great, can we tax them more now then? That’s the only way the money really ‘trickles down’ is via taxation. Tax is a *good* thing.