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!
Quisquam explicabo soluta sed delectus in commodi voluptatem ipsa. Et minus numquam quia enim aut. Illo quae rem aut rem qui praesentium et. Eligendi amet praesentium distinctio ut maiores. Architecto dicta quia rem dolor dolores. Enim quia rem quibusdam vero et esse exercitationem.
Vero veniam expedita ut. Est amet sint quam debitis. Molestiae eos rerum quae iure ex. Fuga veritatis quos sunt dolores consectetur et. Ipsum est a veniam dolor sunt sit natus. Fugiat beatae autem quaerat sunt. Nobis commodi necessitatibus iste cumque est.
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