Across the world Investment Banks have increased their salaries to staff by 37% over the last 4 years. The Association for Financial Markets in Europe survey of 13 large and global investment banks showed that salaries - including pensions and shares - rose, while Bank share prices have fallen. The Financial Times Eurofirst banking index has dropped more than two thirds since 2007 for example.
Banker's bonuses may have come down in the same period by 20% of banker's overall income, but their salaries have risen by 15% of that income to compensate for their 'loss'. Overall, the FT states, Bank shares have 'fallen faster' than total pay. Well, if banker's incomes have dropped in total by 5% yet their Banks have shed two thirds of their value in the market, you're not kidding.
Paying for success? Paying for failure?
No. Just paying the rich to stay rich.
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