This is stupid take… but sure deal flow and fees are down y/y but why does it impact bonus pools so much. GS, JPM, are still making couple of billions, while the junior people have to take the cut
Corporate goal is to maximize shareholder value, not junior banker pay... To incentivize shareholder value contribution bonuses are performance based at different levels from the division down to the senior bankers. To that end, the corporation wants to incentivize the investment banking division to maximize profit. When it does that the IB gets the carrot of big bonuses. When it doesn't it gets the stick of lower bonuses. The corporation isn't going to take a reward from a division doing well (consumer credit cards, etc.) and use it instead to bonus the divisions that aren't doing well. Would lessen the incentive to perform well in future years.
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Corporate goal is to maximize shareholder value, not junior banker pay... To incentivize shareholder value contribution bonuses are performance based at different levels from the division down to the senior bankers. To that end, the corporation wants to incentivize the investment banking division to maximize profit. When it does that the IB gets the carrot of big bonuses. When it doesn't it gets the stick of lower bonuses. The corporation isn't going to take a reward from a division doing well (consumer credit cards, etc.) and use it instead to bonus the divisions that aren't doing well. Would lessen the incentive to perform well in future years.
Thanks for your opinion!
Ut ut ut quis ducimus dicta unde. Facilis aut animi a blanditiis quas quibusdam. Rerum repudiandae quae et eligendi et recusandae ad. Error et est consequatur qui fugiat id minima.
Aut qui saepe ut. Ab deserunt ipsa culpa in. Qui assumenda quia debitis ea ut vel. In et eos velit illum. Est culpa ea labore voluptatem.
Asperiores magni dicta aut voluptas. Labore blanditiis aut veniam magnam ratione. Ut voluptatem dolor eum dicta exercitationem autem ea. Quia repudiandae neque tenetur perferendis magnam ea reprehenderit.
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