When It Comes To Bonuses Are People Bonkers?

Totally! The Evening Standard had an interesting story last week, predicting that 'a new wave of multi-million-pound City bonus claims' will soon be unleashed. The newspaper says that bankers are busy consulting lawyers (rather than earning their bonuses ?) ahead of this year's bonus round, as they are fearful that bosses 'are plotting dirty tricks to wriggle out of making any payments'. Well, this all seems a little strange to me.

Firstly investment banks are businesses. And if a trader (or any other senior employee) is performing well and bringing home the bacon, he or she will be well rewarded for the job done. It just doesn't make sense for firms to upset a star-performer and risk a major revenue stream. And yet this is what we are being asked to believe - that firms are deliberately going out of their way to p.ss off key staff by short-changing them at bonus time. Why would they ? One explanation could be that a firm's view of an individual's performance/ability doesn't quite match up to that individual's opinion of themselves. Now that would be a surprise.

Another reason for a stand-off, however, could be that the revenue-earner has become greedy, and is making unreasonable demands. There's bound to be a time when any firm will say 'enough is enough' and, in that case, it's bound to end in tears before long. After all, some of these guys (and girls) make more in a 12 month period than your average worker brings home in a lifetime. And it's difficult to have sympathy for someone's who's main worry in life is whether to purchase a Porsche Boxner or a Lamborghini Murcielago.

And what about all those senior staff who claim that, notwithstanding their contract, their boss promised them a bigger share of the spoils ? Are you telling me that those big-hitting, deal-driven, business-savvy traders and rainmakers who are as hard as nails in their day jobs, crumple in a heap and agree to work on on vague promises, rather than legally-binding bits of paper ? Come on - if the boss promises you even more untold riches, either take it with a pinch of salt, or get it nailed down.

And if you don't, you only have yourselves to blame. Like your Dad told you, it’s a jungle out there!

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