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Top executives already pocketed 32 billion ChF in bonuses since 2013. In the same period, CS lost 3.2 billion ChF. So locking the stable door after the horses
by mpweiher 4y ago
Top executives already pocketed 32 billion ChF in bonuses since 2013. In the same period, CS lost 3.2 billion ChF.
So locking the stable door after the horses looted the barn and burnt it to the ground before bolting.
By law, Bankers should be paid no more than public officials.
https://www.tagesschau.de/wirtschaft/weltwirtschaft/credit-suisse-ubs-kommentar-101.html https://www.tagesschau.de/wirtschaft/weltwirtschaft/credit-s...
- msm_ 4y ago> Top executives already pocketed 32 billion ChF in bonuses since 2013. In the same period, CS lost 3.2 billion ChF. How were shareholders OK with this? After all, top executives are still "just" employees of the real company owners - stock owners.
- burkaman 4y agoThe top executives are likely good friends with board members and large shareholders.
- AdrianB1 4y agoShareholders in public companies have the same power as individual citizens in voting for a government: in theory they have all the power, practically they cannot do much. The fragmentation of the power of the decision makers is what keeps corrupt governments and company execs in power.
- aaomidi 4y agoShareholders only care about fiduciary responsibility when it comes to laying people off it seems.
- lazide 4y agoIf you can’t get rich by making the business do better, plan B is making sure your bosses love you, no? And who is going to make sure they do amazingly well in the interviews for a role like this but people who would have no problems making their bosses really love them?
- mhh__ 4y agoLosing the staff is worse
- JumpCrisscross 4y ago> How were shareholders OK with this? Credit Suisse paid a decent dividend [1]. Also, calling a spade a spade, the Saudis are this cycle's German landesbank: dumb money. [1] https://ycharts.com/companies/CS/dividend_yield https://ycharts.com/companies/CS/dividend_yield
- codehalo 4y agoAs long as it's not crypto related, it's fine. Banks are allowed to rug pull.
- izacus 4y agoWhere did you ever see a company in which shareholders weren't ok with these kind of bonuses?
- slackfan 4y agoBy law, public officials should be paid minimum wage.
- sesuximo 4y agoSeems like a recipe for unmotivated and low quality govt.
- soperj 4y agoOr a much higher minimum wage.
- agilob 4y agoSo nothing changes, but it's cheaper
- Eumenes 4y agoSounds like what we have currently in the US. I have a family member who is a manager for a state unemployment department ... She oversees like a dozen reps that help handle unemployment claims. She makes $70/hr with a fully paid for pension + benefits and like 4-5 weeks PTO. Recently had a friend get laid off and filing for unemployment. Their queues have like 5-6 hour waits and you can schedule a follow up ... like a week in advance.
- selimthegrim 4y agoSee my comment here: https://news.ycombinator.com/item?id=35242252 https://news.ycombinator.com/item?id=35242252
- Eumenes 4y agoSounds about right. I'm not sure what will ever change these agencies. Obviously paying them more won't, because they are very well compensated. Migrating systems/software? No, the government will pick Infosys or Cognizant, or some other nightmare consulting firm that'll charge $100 million per state. Imo, they need to be gutted from the top down.
- wolpoli 4y ago> By law, Bankers should be paid no more than public officials. But then all the experienced bankers will leave for another country. We can't not let them leave.
- AmVess 4y agoThe same bankers who flew CS into the ground?
- wolpoli 4y agoI can't say whether banks in other countries would hire the former CS bankers, but surely they'll be interested in the one that never worked at CS.
- config_yml 4y agoThiam did a SPAC after leaving CS. Guess what happend.
- izacus 4y agoThe worst case of that scenario is that the target country takes that as a sign of an attack on their economy.
- pjc50 4y agoBy law, google employees should be paid no more than public officials. (No, this doesn't make any sense either)
- mpweiher 4y agoGoogle doesn't have a bail-out guarantee by the government. If the risk is privatised, the profits can be privatised. If the risk is socialised, the profits are also socialised. Simples. See: https://en.wikipedia.org/wiki/Moral_hazard https://en.wikipedia.org/wiki/Moral_hazard
- boeingUH60 4y ago>By law, Bankers should be paid no more than public officials How would you intend to enforce this? Declare a law that no banker must be paid more than than the current highest government salary? Who defines a "banker"...does that same rule apply to the CEO? I understand that Credit Suisse is a poorly-run and incessantly corrupt company, but many times, people suggest "hey, that should be a law!" without thinking it through.
- lagolinguini 4y ago> How would you intend to enforce this? Declare a law that no banker must be paid more than than the current highest government salary? Salaries of government employees and public officials are already dictated by laws in most countries, so this isn't like it is some sort of new area of legislation that doesn't have decades of legislation and case law for reference.
- psychlops 4y agoAnd the laws work so well. In the US they come in on a token salary and retire multi-millionaires with pensions.
- mpweiher 4y ago> How would you intend to enforce this? By law. > Declare a law that no banker must be paid more than than the current highest government salary? No. Simply have a law that employees of a bank that has been deemed "too big to fail" will be regarded as public employees (which they effectively are) and are paid according to the BAT, the Bundesangestelltentarifvertrag, in Germany. Other countries will have similar official regulations as to how public sector employees are paid. "Too big to fail" = "Too big to bonus" > Who defines a "banker"? Employees of a bank that has been classified as systemic, as too big to fail. If the risk is public, the pay is public. If you want private pay, your bank must be small enough that the public does not carry the risk. > ..does that same rule apply to the CEO? Of course. Especially to the CEO. > ...without thinking it through. Just because you haven't thought this through doesn't mean I haven't. > Credit Suisse is a poorly-run and incessantly corrupt company This isn't a singular problem of Credit Suisse. 2008 was just the same, only (so far) on a larger scale. I am usually extremely loath to declare simple/moralistic causes for what appear to be complex and systemic issues. But in these cases, it really was that simple. The bankers knew that it was a sham. They kept the sham going because they wanted to get theirs before the music stopped. When the music stopped the public had to bail them out. And the bankers were still rich. Because profits were privatised and risk was socialised. Fool me once, shame on you, etc. See also: https://en.wikipedia.org/wiki/Moral_hazard https://en.wikipedia.org/wiki/Moral_hazard