The numbers behind soaring Wall Street bonuses

Posted in the Robbinsdale Forum

liBeRALs

Minneapolis, MN

#1 Mar 3, 2013
Wall Street bonuses have risen yet again, with the average bonus up eight percent last year. The average now is $121,890ónot quite two and a half times the U.S. median household income. Which wouldn't sound so outrageously outrageous if these weren't the bonuses, not bankers' total income, and if that average didn't include secretaries as well as top executives. But it wasn't always this way:
Since 1985 the average securities industry bonus in the city has risen about four-fold. Thereís a big jump from 1990 to 1991, when bonuses went from about $27,000 in real-dollar terms to $52,000, and a series of further increases from there. Bankers and traders in a bad year now earn much more than they did in a good one.[...]
In 1985, the industry had about 130,000 employees in New York. Last year, that number was 169,200 (fewer than in 1997, and barely more than the 163,000 workers in 1987).

Meanwhile, the bonus pool has risen in real-dollar terms from $4.1 billion to $20.1 billion.

So the money has multiplied while the number of people dividing it up has not. Presto! Soaring bonuses at the top. While acknowledging that "It doesnít do anything to make it seem fair," Bloomberg's Mark Gimein describes this as a sort of ideologically neutral process in which the deals have gotten bigger without necessarily requiring more people: "Itís just that it doesnít take many more people to do a $300 million deal than a $50 million."
But the thing is, every wage group, among both men and women, worked more hours in 2007 than they did in 1979. For the people at the top, a relatively small increase in hours worked has, as we know, gone along with a big increase in wages.(People in the middle and at the bottom have increased their hours by more, while their wages rise less.) When the top five percent of earners increase their annual hours worked by 7.6 percent, and they're the only people reaping the benefits of working increased hours, that's no ideologically neutral. It's not just a thing that's happening independent of what the rich and powerful want.

Besides, at the end of the day, we're talking about giant bonuses for the people who wrecked our economy when, in many cases, criminal charges would be more appropriate.

http://www.dailykos.com/story/2013/02/28/1190...
Ralph

Saint Paul, MN

#2 Mar 3, 2013
NYC could fall into the atlantic and USA productivity wouldn't change one bit.

What is actually produced by NYC?
Schmahl Spew

Poland

#3 Mar 3, 2013
Ralph wrote:
NYC could fall into the atlantic and USA productivity wouldn't change one bit.
What is actually produced by NYC?
Schmahl, you can't even SPELL economics - you know less than nothing about it.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Robbinsdale Discussions

Title Updated Last By Comments
Black executes 2 COPs 2 hr Sunshine 1
Mall of America Protest 5 hr cantmakeitup 15
Minneapolis schools superintendent FIRED 10 hr Ron 9
Global warming 'undeniable,' scientists say (Jul '10) 12 hr Earthling-1 33,474
Walker Wins Unions Lose (May '12) Fri LIbEralS 29
Veteran Freed From MSP VA Dental Dept Phone Abu... Fri American_Sons 13
Review: State Wide Protective Agency (Jul '11) Fri Martin Scott treptow 84
Robbinsdale Dating
Find my Match
More from around the web

Robbinsdale People Search

Addresses and phone numbers for FREE

Robbinsdale News, Events & Info

Click for news, events and info in Robbinsdale

Personal Finance

Mortgages [ See current mortgage rates ]

NFL Latest News

Updated 2:50 pm PST

Bleacher Report 2:50PM
Complete Week 15 Preview for Green Bay
Bleacher Report 8:19 PM
Ranking Packers' Best Wins over Buccaneers
Bleacher Report 9:16 PM
What Are Experts Saying About Vikings vs. Dolphins
Yahoo! Sports12:30 PM
Greg Cosell's Look Ahead: Aaron Rodgers' off day
Yahoo! Sports 5:26 PM
Lions claim playoff berth with Eagles' loss