Jim Brooks

Last week saw the attempted return to normality for bonuses in the banking world. The arguments were superficially persuasive: that these bonuses were an essential part of successful modern banking. These hugely talented people are in such demand that they will be persuaded to join other banks if the million pound plus bonuses are not paid out. The risk was that the public rescue money sunk into these banks would be jeopardised by their inevitable defection. The recovering share price would fall back. A narrow short-term view that some restraint in remuneration was somehow required in misplaced guilt and shame was counterproductive and would backfire. Read more...