Wall Street drops end year bonuses by 18 billion. (percentage, interest, money)

[70Ford]

That's gonna leave a mark.

**********************

For traders accustomed to receiving bonuses of as much as $500,000, the ramifications of the pay cuts are “huge,” Mr. Marcello said. “That’s the base of most people’s compensation.”

It would mean about $10 billion less in taxable income and several billion dollars less to be spent on apartments, furniture, cars, clothing and services.

http://www.nytimes.com/2008/07/26/ny...hp&oref=slogin

[Wild Style]

it sucks for my hometown but it will bring in the much needed correction!

Government officials in New York are preparing for what could be the biggest single-year decline in pay on Wall Street in history and with it a vexing shortfall in city and state revenues.

[tallrick]

A great start, but we have a LONG way to go!

[evilnewbie]

I will believe it when I see it... until then, just smoke and mirrors...

[pghquest]

Originally Posted by tallrick

A great start, but we have a LONG way to go!

What exactly is it a great start of?

[tallrick]

Originally Posted by pghquest

What exactly is it a great start of?

The less money that goes to Wall Street, the better the economy will be. I hope it is the start of the end of the finance-based economy.

[NJ Chutzpah]

these hedge fund managers do not deserve it anyways

same goes with most of the top managers at the big Comps

That money should go out the shareholders in the form of dividends, or back into the interest bearing accounts of clients

[70Ford]

Interesting point...but isn't the reasoning behind it to offer the best, so you get the best? From reading the article (and other sources) It seems there is a glut of talent available now. In other words more supply/less demand.

I feel for those realtors out there. 18 billion dollars in the local economy? That's the GDP of a small country.

[Nor'Eastah]

Originally Posted by 70Ford

...but isn't the reasoning behind it to offer the best, so you get the best?

I don't know about you, but I don't get up in the morning expecting to do less than my "best" at work! Folks all over this country get up every morning and go to work to do their "best". We generally get compensated according to how well we do, with a small percentage bonus at the end of the year. NO WAY do we get anything like these Wall Street types, and yes, I do think it is way overdone, that money should go back to the investors. Wall Street should learn to live on its salary, just like the rest of us. Too much greed, too much hubris.

Just how well are these guys doing now? Not well enough for the big bonuses, huh?

[70Ford]

Originally Posted by Nor'Eastah

I don't know about you, but I don't get up in the morning expecting to do less than my "best" at work! Folks all over this country get up every morning and go to work to do their "best". We generally get compensated according to how well we do, with a small percentage bonus at the end of the year. NO WAY do we get anything like these Wall Street types, and yes, I do think it is way overdone, that money should go back to the investors. Wall Street should learn to live on its salary, just like the rest of us. Too much greed, too much hubris.

Just how well are these guys doing now? Not well enough for the big bonuses, huh?

I always do my best. Otherwise...it's not worth doing. You'll just end up doing it over..and probably waste more effort than you originally would have exerted. There's been times where I felt I wasn't being adequately compensated for the amount of work I was doing. I asked for more money and if an amicable deal wasn't reached..well.. there's always the door, isn't there?

I expect these astronimical sums were used to lure talent and the keep talent. Yes..to get that money, they would have to continue to do their best (Or be replaced by the next hotshot). But they also used them as a recruiting tool.

Incidently, I hope you don't expect waiters and waitresses to live on their salary. They live on salary + tips. These people lived on salary + bonuses.
I'm not saying the way service people are paid is right (in fact, I think it is stupid) but I'm saying it is what it is.

Perhaps a restructuring of the salary/bonus structure might be forthcoming out of this? Now, if they could just pay the waitress a decent wage.....