Why do bankers get such big bonuses?
Question asked by: mrquestion
Asked on: 20 Jan 2010
Bankers get such big bonuses because they have a management structure and culture that allows them to do it.
And that really is the only answer.
In most companies then the profit is ploughed back in and invested again in the company, or it is used to pay something like a shareholder dividend.
In the world of banking though everything is so short term (this is investment banks) then rather than think about sustainability any profit is paid out in huge bonuses to those that work there: good for them, bad for the economy.
By: knowitall
Replied at: 20 Jan 2010
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