A question about bonus culture
Posted by: Jonathan Gorse on 09 February 2009
I'm curious about the current situation regarding bonuses paid to staff in banking. Leaving aside the emotive issues around this subject I'm struggling to understand why bonuses were being paid without any seeming link to profitability i.e. how can RBS for example with its disasterous losses still be contractually obliged to pay bonuses?
In my old field of airlines for example if the sales team increase turnover by selling all the seats at a loss then no bonuses would be paid if no profit is made. (I hasten to add that for flight deck crew we don't get any bonus anyway because you either land it or bend it and they reckon you are paid a salary to do the former)
Just curious,
Jonathan
In my old field of airlines for example if the sales team increase turnover by selling all the seats at a loss then no bonuses would be paid if no profit is made. (I hasten to add that for flight deck crew we don't get any bonus anyway because you either land it or bend it and they reckon you are paid a salary to do the former)
Just curious,
Jonathan