Would you give back some of your bonus?

19 November 2008

1 minute read

Peter Wuffli has done it. Other UBS executives are reportedly being asked to do it (and may yet be obliged to if they abstain). Rumour even had it that Lehman Brothers bankers would be required to do it following the company's bankruptcy.

So would you give back all or some of last year's bonus?

Contrary to stereotype, it is not without precedent for bankers to forgo monetary rewards. When John Mack joined Credit Suisse in 2003, he famously persuaded some of its overpaid employees to sacrifice the generous packages awarded by his predecessor.

This time, however, it's different. This time it looks like bonus payments will stay depressed for a while and that opportunities to recoup what's been relinquished any time soon will be limited.

However, giving back a bit of your bonus would make you look good. It would also help your organisation during a difficult time. So will you give it up for the good of your comrades?

AUTHOReFinancialCareers UK

Insider Comment

Sa
Sarah, Editor, eFinancialCaree
21 November 2008
DM - that may be. But it remains the case that UBS has asked some of its people to pay back what they got last year. The silliness is not entirely ours.
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DM
DM
21 November 2008
This is a silly article and a silly suggestion
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KP
KP
20 November 2008
Ray - CEOs are giving back bonuses. But this goes a little deeper than the execs.
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Ra
Ray
20 November 2008
"However, giving back a bit of your bonus would make you look good. It would also help your organisation during a difficult time."
Who wrote this article? It seems stupid to me. Make you look GOOD? HELP your organization? They will put your name in the layoff list nevertheless. If you want to build up this kind of bonus-give-back system with credibility, please show you can get the bonus from the former CEOs of the investment banks first.
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Th
The authority
19 November 2008
I think you misunderstand the nature of investment banking. This is an industry in which the rewards in good times can be phenomenal and the risks in bad times are extreme. We are now in the midst of an unprecedentedly bad time when everyone feels at risk of losing their job. Why, therefore, would anyone want to pay back the cash that compensates for the current nightmare?
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