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  • Anforme Why do Bankers get Bonuses?

Anforme Why do Bankers get Bonuses?

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Stephen Romer discusses the reasons why there are very high rewards for those working in
the banking industry.

Summary of Key Points:

  • It has been standard practice for banks to pay bonuses to senior executives and other members of their staff.
  • Banks say bonuses attract the best banking talent, and ensure high levels of motivation.
  • Critics of the banking industry say that bonuses encourage reckless risk-taking and the banking crash is commonly blamed on the ‘bonus culture’.
  • The banking crash has caused a deep recession in the global economy and hence there is a debate ongoing about the need for the regulation of bankers’ bonuses.

This article is from ET Volume 17 Issue 1.

Stephen Romer discusses the reasons why there are very high rewards for those working in
the banking industry.

Summary of Key Points:

  • It has been standard practice for banks to pay bonuses to senior executives and other members of their staff.
  • Banks say bonuses attract the best banking talent, and ensure high levels of motivation.
  • Critics of the banking industry say that bonuses encourage reckless risk-taking and the banking crash is commonly blamed on the ‘bonus culture’.
  • The banking crash has caused a deep recession in the global economy and hence there is a debate ongoing about the need for the regulation of bankers’ bonuses.

This article is from ET Volume 17 Issue 1.

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