Monday, November 17, 2008
Bonuses : UBS Apes GS
The NYT reports that UBS will, like Goldman, not pay its executives any bonus this year. The NYT apparently wants to say, Hurrah! But it looks more like a concerted publicity campaign, to deflect attention from the fact that both are still planning on paying out huge sums this year to everyone else. And make no mistake about it - executive bonuses are only a fraction of the pool; most of the money goes to those below. Inquiring minds want to know why any IB worker should get a bonus, when IBs are receiving taxpayer money to stay afloat. Unhappily, it looks like the IB model of pigs-at-the-trough will be left in tact; and these same UBS and Goldman executives are undoubtedly planning to make up for this year's sacrifice with even more loot the next time around.