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It’s bank bonus season—the time of year when bank executives put a price tag on executive bonuses. And despite Washington’s calls for banks to tread lightly, The Wall Street Journal reports this year’s bonuses could reach 2007 levels.
We’re looking at perspectives from CNN, The New York Times, ITN, PBS, and NBC News.
Banks haven’t released any official numbers just yet, but industry insiders say six-, seven-, and even eight-figure bonuses could be in the works for some chief executives.
On PBS, David Corn of Mother Jones says Main Street has let executive compensation climb out of fear.
“So what happens is people are, while they're angry at Wall Street, particularly on the corporate compensation front, which is very easy to get angry about, they also are fearful of taking Wall Street on because they’ve been taught, if the Dow falls it’s going to be bad for all of us. There’s this Stockholm system where we’re forced to identify with the people who are holding us hostage without our interests in mind.”
The New York Times suggests this time, banks should start preparing for the public’s wrath. It predicts this year’s bonus season will be “one of the largest and most controversial blowouts the industry has ever seen.”
“ … few banks are taking immediate steps to reduce bonuses substantially. Instead, Wall Street is confronting a dilemma of riches: How to wrap its eye-popping paychecks in a mantle of moderation.”
Part of that “mantle of moderation” The New York Times references is Wall Street’s plan to cut or even eliminate cash bonuses all together. They might instead opt for stock awards that more closely tie compensation to the bank’s success.
Analysts for ITN and CNN Money offer opposing perspectives on how much banking execs actually deserve.
“There just aren’t enough people on this planet with the skill sets that are required to give people financial advice. Quite frankly we don’t have people graduating out of the universities with those skill sets, so I suspect bonuses are going to remain high for the foreseeable future.”
“If you look historically, the average Wall Street bonus 20 years ago was $15,000... It’s astounding the kind of growth we had. The top year was 2006 when the average bonus was $190,000, and this is just cash bonuses on Wall Street in the New York City securities industry. It’s difficult to argue that people are worth 12 times as much in 2006.”
Remember those carnival whack-a-mole games? In the UK, they’ve been replaced with “Whack the banker.”
NBC’s Today Show tells us how the British are releasing their frustration with banks.
“The game apparently so popular in Britain, the mallets keep wearing out. Somewhere the moles are enjoying a little quiet vacation.”
So is public anger at bank bonuses justified? Who should decide how much bank executives get?
Writer: Newsy Staff
Producer: Jennifer Herseim
