Oct
13
Fall of the fat cats?
Back in March I asked Are you overpaying your CEO? It seems rather prescient looking at the news today.
The BBC is reporting that Bank shares fall despite bail-out - which is kinda stating the obvious. The government's taken majority stakes - they're basically angel venture capitalists. Like any angel VCs, they're coming in with a high level of control. They're coming in to save the business, so it makes no sense to leave it as is, and their money's going to get repaid first.
Is this the end of the fat cat bankers? The argument for the ridiculous bonuses has always been market related. I reckon the fact that the bankers from one bank will represent the majority of shareholders at another's means that shareholders should not decide banker salaries.
The BBC is reporting that Bank shares fall despite bail-out - which is kinda stating the obvious. The government's taken majority stakes - they're basically angel venture capitalists. Like any angel VCs, they're coming in with a high level of control. They're coming in to save the business, so it makes no sense to leave it as is, and their money's going to get repaid first.
Is this the end of the fat cat bankers? The argument for the ridiculous bonuses has always been market related. I reckon the fact that the bankers from one bank will represent the majority of shareholders at another's means that shareholders should not decide banker salaries.
