Liz Truss - the first 100 days....

[BoldonLad]

It is a cap on bonuses, not salary. Bonuses are paid to reward good/exceptional performance (as mentioned that comes with potential for higher risk taking to achieve that performance). At least the company can theoretically get increased profits from extra effort but does not have to pay extra for unexceptional performance. Companies are not going to guarantee to pay staff huge salaries that are possibly double or more their normal basic on the chance that people will still put the extra effort in without the bonus incentive.
A cap is not perfect but it has some effect and it is wrong to let the perfect be the enemy of the good. You can be as pedantic as you like over @Adam4868's wording of "not going to stop them", but it does make it much more difficult to get round excessive bonuses, and does have an effect.

If it was not having an effect on reducing bonuses why would the Tories feel the need to get rid of it to help their friends in the financial sector, and face the possible bad publicity at this time of increasing cost of living?

I never said otherwise.

 

[BoldonLad]

Read what I wrote again maybe...what is difficult in this for you ?
A cap won't stop them paying there workers huge wages and maybe other perks...but the caps as I've said before are to stop reckless behaviour or inviting them to take risks for reward.
In the current climate do you think it's necessary?

I did read what you wrote, which was:

Let's be honest if the Banks choose to reward their workers a cap isn't going to stop them.Its a sh1t argument from you that hardly deserves a reply.

 

[Deleted member 49]

I did read what you wrote, which was:

Ah I see...is that like your ace card you've played ? Damn I've been caught out by you.But there's a bit of a difference isn't there.As I said they can pay them whatever they like.But thats not bonuses is it or its not really enticing them to take risks.But you win I give up.
Shame you couldn't take as much notice from the posts after.🙄

 

[Fab Foodie]

Part of the problem as I understand it, is that because of the current cap multiple of salary, UK bankers have to pay higher basic salaries than banks in the EU. That makes UK banks appear less attractive.

If for sake of argument a bankers total salary with bonuses is 100k market rate.
The UK cap is 2 x salary you need to pay a basic salary of 50k.
If elsewhere the cap is 4 x salary, then the basic pay need only be 25k.
Which would you prefer to invest in?

 

[BoldonLad]

Part of the problem as I understand it, is that because of the current cap multiple of salary, UK bankers have to pay higher basic salaries than banks in the EU. That makes UK banks appear less attractive.

If for sake of argument a bankers total salary with bonuses is 100k market rate.
The UK cap is 2 x salary you need to pay a basic salary of 50k.
If elsewhere the cap is 4 x salary, then the basic pay need only be 25k.
Which would you prefer to invest in?

Interesting. Was there a always a miss-match between the EU Cap multiple and the UK Cap multiple, or, is this something which has arisen since Brexit, or even before.

 

[fozy tornip]

There exist men, and women of course, who plant trees, sow forests, although they themselves will not live long enough to enjoy their fruits, nor shelter under the shade of their branches.
And then there are people on the political Right.

 

[deptfordmarmoset]

Part of the problem as I understand it, is that because of the current cap multiple of salary, UK bankers have to pay higher basic salaries than banks in the EU. That makes UK banks appear less attractive.

If for sake of argument a bankers total salary with bonuses is 100k market rate.
The UK cap is 2 x salary you need to pay a basic salary of 50k.
If elsewhere the cap is 4 x salary, then the basic pay need only be 25k.
Which would you prefer to invest in?

As far as I understand it, the UK and EU cap is still the same, with 2xbonus being widely adopted. The argument would hold, however, if the UK became one of those ''elsewheres.''

UK bankers may have to pay higher basic salaries but that's going to be for different reasons: retention, higher accommodation costs, etc.

 

[Fab Foodie]

Interesting. Was there a always a miss-match between the EU Cap multiple and the UK Cap multiple, or, is this something which has arisen since Brexit, or even before.

https://www.reuters.com/markets/eur...ain-ditches-bonus-cap-cut-eu-ties-2022-09-15/

At the moment the UK Cap is the same as the EU. As @deptfordmarmoset states, breaking out of this might make the UK seem less regulated, more free-market, to attract more talent and investment to maintain London's primary position in Financial Services.

It's a gamble to cover-up the effects of the Brexit shitshow which may have the opposite effect...

 

[albion]

https://www.theguardian.com/commentisfree/2022/sep/23/liz-truss-power-extreme-neoliberal-thinktanks


The corruption is a money go round. Yet whilst suggesting Truss has handed over power seems to forget Boris always knew who The Boss was.

 

[All uphill]

https://www.theguardian.com/commentisfree/2022/sep/23/liz-truss-power-extreme-neoliberal-thinktanks


The corruption is a money go round. Yet whilst suggesting Truss has handed over power seems to forget Boris always knew who The Boss was.

Carrie?

 

[matticus]

Carrie?

... doesn't live here any more.

 

[Fab Foodie]

Snouts in the trough....

https://www.theguardian.com/politic...-hair-norwich-city?CMP=Share_AndroidApp_Other

 

[matticus]

Love this. Love the group name, all of it:

View: https://twitter.com/secrettory12/status/1573390350336806913?t=JVtteEdwhYTasjs_-0ZlTA&s=19

 

[newfhouse]

View: https://twitter.com/gabriel_pogrund/status/1573720354555678720?s=21&t=ekFree0U3e5s44CHvUMo2A

 

[icowden]

Ruh roh...

https://www.thenorthernecho.co.uk/n...idence-liz-truss-already-put-in-says-tory-mp/