Zero bonuses for bankers

They may read the Financial Times every day but it seems that a lot of bankers still don’t get what’s happening. For many, life in the financial sector is going on pretty much as it did before. The Telegraph has been talking to some City headhunters who see the same detachment from reality, especially when it comes to the prospect of eighty percent cuts or even zero bonuses:

“There are a lot of bankers out there who just don’t seem to realise that they are not going to be paid,” said one headhunter. “This is going to be a real wake up and smell the coffee moment.”

It’s many years since I left the world of investment banking. Unless you have worked for one, it is difficult to imagine the near-paralysis a bank goes into as the annual bonus round approaches. Bonus pots are modelled, cut and re-cut in what must among be the most convoluted pay review processes I have ever seen in any organisation. As usual, City HR managers will be burning the midnight oil over the next few weeks.

But, while I’m glad I’m no longer involved in it, I’d love to be a fly on the wall when bankers are told that they will get nothing this year. The tantrums and the righteous indignation will be truly spectacular.

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4 Responses to Zero bonuses for bankers

  1. jameshigham says:

    They should get the cameras in there and then make a movie of it.

  2. Jo says:

    Apparently the CEO of AIG will get $1 this year.

    On your point, yesterday in the city mile I saw a curious sight.

    Two young women with children under 1 year (unable to sit alone) were dominating a 6 person table (everyone else was sharing) in a Chinese restaurant. They sat opposite each other, making conversation with each other impossible. They had also ordered quite a lot of food which was untouched and cold. Apart from the absurdity of it all, I did comment to my companion that these young women obviously hadn’t taken in that their partners weren’t getting bonuses this year.

  3. Vgossip says:

    most are aware…but hope lives…we all want our raises, dont we?

  4. Tom says:

    Not only did he get the $1/year for actual pay, recent developments are starting to show that AIG and Cassano aren’t as responsible as people thought for the financial crisis. Check it out, http://research.scottrade.com/public/markets/news/news.asp?searchtxt=cassano&go.x=0&go.y=0&go=Go&section=headlines&searchtype=0&filter=

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