The WSJ published an article today with a new spin on the infamous Wall Street bonuses. Some of the key points in the article explain how capping bonuses would not only create a "brain drain" from Wall Street, but it might also incentivise America's best and brightest to go abroad. It also covered some unintended reprocussions from diminishing bonuses:
A few quick facts about Wall Street bonuses. The pretext for the political outrage was the New York comptroller's report this week on the aggregate data for bonuses in 2008. That "irresponsible" bonus pool of $18 billion was for every worker in the New York financial industry, from top dogs to secretaries. This bonus pool fell 44% in 2008, the largest percentage decline in 30 years. The average bonus was $112,000; bonuses typically make up most of an employee's salary on Wall Street. The comptroller estimates that this decline will cost New York State $1 billion in lost tax revenue and New York City $275 million. Both city and state may have to announce layoffs.
Read the Wall Street Journal article
here.
The WSJ published an article today with a new spin on the infamous Wall Street bonuses. Some of the key points in the article explain how capping bonuses would not only create a "brain drain" from Wall Street, but it might also incentivise America's best and brightest to go abroad. It also covered some unintended reprocussions from diminishing bonuses:
