Bankers and their bonuses (2)

John Barrett and his Liberals have recently suggested that I am out of touch for defending Bankers bonuses.

I wonder if they really have a clue about the way business works.

The fact of the matter is that the Banking industry, indeed most industries, use bonus schemes as incentives to greater performance. Everyone employed in the financial services sector and any other sector involving selling will be familiar with this. Employees have a basic level of salary and they are able to earn additional amounts over and above the basic in return for additional performance measured by specific targets.

Bonuses are paid after the event, in other words any bonuses paid to bankers in Edinburgh during 2008 (and before any taxpayers money was involved) relate to performance in 2007. It doesn't take Einstein to work out that if targets are not met, bonuses will not be paid. Given the losses incurred by the Banking industry in 2008 it is unlikely that many people will be paid bonuses. Those who may receive them will have achieved agreed targets, as such are entitled to their bonus (or incentive) payments.

Nothing that I am saying will come as any surprise to the many thousands of people in Edinburgh West employed in the banking and financial services industry. They already know how the system works.

No, the only people out of touch here are the Liberals.