"The problem with bonuses in the financial industry is not about
their levels – if someone makes a huge contribution to the economy, he or she
should be richly rewarded. The main problem is that these
bonuses are given to people for doing the wrong things well – things that harm
the economy in order to enrich the shareholders, the top managers of banks and
other financial firms.
So the real question is how we
make banks and other financial firms pursue the right goals, rather than how
much people should be paid, whether in bonuses or salaries. And the only way to make them pursue
different goals from those they pursue now is to change the rules of the
game."
http://www.cepr.net/index.php/op-eds-&-columns/op-eds-&-columns/the-banking-industrys-biggest-problem-isnt-bonuses-or-market-share?utm_source=CEPR+feedburner&utm_medium=feed&utm_campaign=Feed%3A+cepr+%28CEPR%29
