Home > Business News > Bankers are Balling Again

Bankers are Balling Again

Today Morgan Stanley announced they’re 2009 compensation figures, and they are near-record highs in nominal value.

The media is in an uproar, drumming up anger and contempt towards some of the worlds’ best-paid employees. What is glaringly missed is the fact that banks also had near-record years in terms of profits. Those profits and their sustainability are a rant for another time, but isn’t the essence of the public’s fervor from last year that compensation should be tied to profits and that employee’s not receive bonuses in bad times?

In the financial world, the good times are back. Not only have the banks built enormous profits again, they have rolled back the percentage of those profits that they are paying to their employees. 2008 saw an exorbitant 62% of the bottom-line redistributed as compensation. The 2009 number is 33%, which is significantly less than even the historically typical 44%.

All of that indicates to me that it may be a good time for new business grads to be looking at CFAs and potential careers in the financial sector. That is, if you like money of course. If not, try Arts – I promise that you won’t be burdened by any extra cash.

For more, check this out: Damn it Feels Good to Be a Banker

  1. January 15, 2010 at 10:22 pm

    No matter how one looks at this issue, at the end of the day taxpayers’ dollars have gone to the banks in bailout packages, and now it’s time for the money to come back to the government. Whether this is done in a single payment or spread out over one decade isn’t for me to comment on because I haven’t done research on the issue, but it’s the right thing to do.

  2. January 15, 2010 at 10:32 pm

    $$$ Already repaid by banks to the “taxpayers”

    J.P Morgan and Chase – $25 Billion
    Goldman Sachs – $10 Billion
    Morgan Stanley – $10 Billion
    US Bancorp – $6.6 Billion
    Capital One – $3.6 Billion
    And many more…

    I don’t understand if you’re in favour or opposed to the above post.

  3. Kelly G
    January 30, 2010 at 6:48 pm

    “2008 saw an exorbitant 62% of the bottom-line redistributed as compensation”

    I wonder how shareholders feel about that amount of money being diverted to employees rather than flowing through to the bottom line.

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