British bankers have admitted that they are paid too much, a report into moral standards in the City of London will reveal tomorrow.
A survey of 500 workers in City financial institutions, carried out for the Christian think-tank St Paul’s Institute, found that “a substantial number” believed they were overpaid compared with other professions ”“ particularly frontline workers including teachers and, most of all, nurses.
The results will fuel continuing bitterness towards the industry over its culpability for the financial crisis and its apparent failure to rein in huge salaries and bonuses . Last night The Sunday Times reported the publicly owned Royal Bank of Scotland is planning to pay its investment bankers about £500m in bonuses.
I wonder how many American bankers would admit that they’re paid too much? Not that they’re greedy,of course, but my guess is that few would admit to it.
Nassim Taleb, the trader, wrote a neat little article in the NYtimes arguing that the average banker shouldn’t get any bonuses. If anything, they should be paid like higher level civil servants. Investment Bankers, of course, should have some skin in the game. the problem was that they could invest, but not get penalized for their investment.
The problem is, they agreed to the salary when they were hired, and the employers agreed to the salary when they offered it. That’s their right.
They are paid too much? Then it’s up to both parties to re-negotiate. Otherwise, give the difference between what they think they should earn and what they do to charity.