I heard today that 60% of profits are used to pay bonusus to

[napi21]

at least one of the financial inst! One of the others was using 50% of profits to pay bonuses. WHE in the world are their stockholders putting up with that????

private co. can get away with that kind of BS, but a PUBLIC ONE??? I know if I owned their stock, I'd be filing a law suit!

[Statistical]

1. Why?

Stock is up 60%-80% from the lows.

I mean it isn't like financial companies need to pay for natural resources, patents, or licenses.
The bonsues/compensation is cost of doing business.

It would be like suing Intel because they "waste" half their revenue on silicon wafers (big discs of mostly sand).

If you were a shareholder which would you rather see:
a) record losses and small bonuses/compensation
b) record profits (on back of taxpayers) and massive bonuses.

Another way to look at it is the more money the bank makes the more profit BOTH shareholders & bankers make.

All paid for by taxpayers and via 0% interest rate policy of the Fed.

[FreakinDJ]

2. BullShit - those bonuses don't buy better CEOs

they pay for "Washington Influence" and coruption

You can't be a succesful Wall St. CEO without at lest 2 or 3 politicians in your pocket.

Do you actually think working stiffs like you and me could just "call up" our Senators, much less have their personal cell phone on speed dial

[Statistical]

3. Which helps PROFITS.

Which shareholders see as a cost of doing business and a good ROI. If shareholders thought it affected their bottom line they would sell the stock for something that is a better investment.

Also bonuses are not just for CEO. Pretty much entire investment banking labor force is bonus based. A fixed salary plus annual bonus based on returns.

So broker bringing in 10 million in profits gets a slice of it and gets a $500K bonus on top of his $150K salary.

It isn't just one or two guys at the top getting a bonus. Places like Merill Lynch will pay out bonuses to literally thousands of people.

I don't get the craziness about bonuses.

Broker gets $150K salary and $500K bonus. How is that any different than say just paying the broker $650K in salary.

Simply add another tax bracket. Our so called progressive tax code maxes out at $340K. Why not a $1 million bracket (5% higher than $340K) and a $5 mil bracket (10% higher) and $5 mil bracket (20% higher) and a $20 mil punative bracket at 70%.

[FreakinDJ]

4. Yes - Profits like Banking on the Destruction of America's Working Class

But Corporate Irresponsibility and Washington Corruption would be a whole other thread

[Statistical]

5. Agreed never said it wasn't corrupt, or imorral, or doing damage to the economy.

Just stating facts that bonuses are paid to brokers in financial sector.

It is a cost of doing business.

Kinda like cars are sold on commision, and waitstaff works for tips.

All I was saying is it is nothing shareholders are going to get upset about.

Plus markets tend to be very democratic. If you are think a company or its policies (like paying out huge bonuses) suck then sell the stock a buy a "less sucky" company.

[napi21]

6. I disagree with you. Cost of doing buisness, salaries & bonuses

are, but 60% of profit is not! I don't like the idea that someone is valued at multimillion $$ a year. I can't imagin what you coult possibly do to be worth that kind of money! And yes that includes sports stars! Decent $$ yes, but multimillions to play football or baseball...NO! Same holds for these nutballs in the financial business. What exactly do you do to make it worth it to ME to pay you multi millons?

[Statistical]

7. Then don't buy stock in banks or sports teams.

See how democratic the stock market is. Of course the less people buy the stock the lower the price and thus the more valuable in terms of P/E the stock becomes to investors who do believe it makes sense.

Also most of the bonus money gets splits among thousands of employees. I think at Goldman Sachs the average bonus is about $300,000.

Now that is a lot of money. More than I will ever make but most brokers don't make millions. It is a fun populist poutrage but the reality is the vast majority of brokers make well below the 1 million mark even with bonuses.

[DisgustedInMN]

8. And yet, I'll bet ..

.. you just "can't understand" why the vast majority of Americans want to see ALL banksters hanging from the end of a short rope, can you?

"the average bonus is about $300,000" ...

For moving piles of money around without EVER created anything of value..

You and your breed are some truly out of touch monsters.

Enjoy it while you still can.

[Statistical]

9. READING IS FUNDAMENTAL.

Here let me give you the outline

1) I don't own stocks in financials. I PERSONALY don't see value there.
2) I explained how all that profit is on back of taxpayers, is imorral, and hurts the economy
3) I am not a banker
4) I clearly explained that $300 is MORE THAN I WILL EVER MAKE

See a forum consists of words and words have meaning.
The activity of turning words into thoughts is called reading.

You must READ FIRST then post SECOND. It works much better that way.

[DisgustedInMN]

10. Insult me...

...that plays just great. Out of touch in each and every way.

[Statistical]

11. Its not an insult. It is reality.

You are confused.

Nothing in your rant was based on what I wrote.

How exactly should a non-banker "enjoy it while I can"? What exactly am I suppose to be enjoying?
My non-existent bonus? My middle income salary? The financial stocks I DONT own? What exactly?

[DisgustedInMN]

13. Welcome ..

... to off the radar. I know a fucking condescending insult when I see one. You're more than confused if you think I'll take it sitting down. Piss off.

[Statistical]

14. OH NOES. I guess I need to delete my DU profile now.

[girl gone mad]

16. " Goldman Full Year Compensation Per Employee: $498,153..

Firm Reports Negative Compensation Expense In Q4."

[Progressive_In_NC]

12. I've told my boss my time is worth 5,000 an hour to me, I'll never get it back

I just can't find anyone in the market willing to pay that.

[izzybeans]

17. Somehow companies managed just fine during the postwar boom years

without such ideological bs about compensating CEOs.

I wonder how that was...hmmm...and now I wonder why these "high performing" yahoos who are wrecking the economy still deserve big bucks for it. Oh yeah, just 'cause...how else will motivate them to do a shitty job.

[girl gone mad]

15. Worse. 50% of REVENUES, not profits.

Goldman paid out more in bonuses than it even earned.