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Banks and bonuses

8th Nov 2009
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There are a lot of comments in the press about bonuses for bankers along the lines of "they just don't get it" as they return to their previous culture of 'greed is good'.  The big hitters can earn vast sums in the short term for dubious long term reward for the economy, which cannot be right.  The only way they will stop is with legal reforms.

There is a world of difference for frontline staff on low salaries earning modest bonuses, who have to hit sales targets or face the consequences.  However, I often think that you could forgive the banks for these incessant sales demands on junior staff, if they were doing that after first being a good bank.  Costs have been cut to the point where basic administration is woeful and the banks have forgotten that their first duty is to provide good customer service.  If they got that right then there would be more trust when they were selling additional services.  Its time for them to go back to basics, by freeing up time amongst their frontline staff and being more realistic about sales and bonuses here too.  But the reforms required are a matter of leadership from the same big hitters mired in big bonuses!

Ray

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By Anonymous
10th Nov 2009 10:36

Bank bonuses

I wonder, what would have happened if the banks had been allowed to 'go bust'. Were the bonuses part of the employment contracts and still payable on redundancy?

 

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By raybackler
11th Nov 2009 00:22

Contracts

I am not an expert on contracts, but for a continuing business they surely have to be honoured.  In my blog, I was talking about leadership in the future.  Of course, in insolvency different rules apply.

Ray

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