Bogus bonuses?

It's banker bonus season again, and the press is full of articles, reports and general grumbles about the whole thing. As a nation, we seem to have a huge problem with the bonuses, not in small part due to the fact that we, the taxpayers, have had to bail out some of the banks after the hideous financial crash in 2008. A survey done last year showed that 2,800 bankers received over £1 million as bonuses, and Stephen Hester (RBS Chief Executive) is in line for £2.5 million. In total, City bonuses could reach £7 billion.

So, what exactly is it about the bankers bonuses that gets our goat? Is it the size? We can argue that the country needs a functioning banking system, and if banks need to incentivise their investment bankers in order to turn a profit, the why not? After all, surely banks are fundamental to the economy? Bankers have a contract which includes bonuses. We would be unhappy if our employer suddenly stopped paying us our contractual dues, and bankers no doubt feel the same. If you can't beat 'em, you can always join 'em as a City slicker... But do bonuses make for better bankers, or just encourage greed? It seems that tax payers feel they are being hurt - in this economy, in its current state because of bankers, we are facing job cuts and pay freezes, whilst the people responsible for the situation are getting paid huge bonuses.

Another bone of contention to some Brits is the salaries and bonuses paid to our footballers. Not only do they command massive transfer fees (the largest on record being that of Cristiano Ronaldo in 2009 from Manchester Utd to Real Madrid, for a whopping £80,000,000), they also demand huge salaries. Reports suggest that Wayne Rooney is currently on £230,000 per week, although it is thought to be closer to £200,000. Nice work if you can get it. Which most of us can't. Unlike the bankers' bonuses, footballers are privately funded through clubs, who obviously make their money from selling tickets, merchandise, kit etc. So does this make us more accepting of their payouts? Not necessarily. There is some feeling that what footballers do isn't, well, worthy - not in the same way that, say, doctors or teachers are. Many people are also of the opinion that footballers in this country don't work hard enough to justify their huge salaries... look at the appalling shambles we call the World Cup team. Things aren't helped by the fact that lots of footballers are, well, a bit chavvy, and so seem less deserving of their vast sums than others may be.

At the moment, with bankers' bonuses being once more in the headlines, the ill-feeling is preserved for them and them alone. Seen by many as spoilt middle-class toffs who've ripped off a nation to pay for their Porsches, bankers are getting a very raw deal right now. Apart from the massive bonuses, that is. The morality of footballers' high wages has been long debated, with two distinct camps - the ones who think it's an outrage, and the ones who think footballers deserve their high wages and support them thoroughly through buying season tickets and each new strip. Somewhere in the middle are people (like me) who just don't care either way.

So how do we determine who is "worth" more? The bankers, the footballers or neither? If someone can turn a loss-making bank into a profitable one, don't they deserve recompensation for this? - after all, if they're not paid enough, they won't stick around. If a privately owned company wants to pay one of their footballers over £200k a week, where's the harm? If they are perceived by the organisation to be worth their weight in gold - or bonuses - then surely that's the main thing. After all, we all have an employment contract which clearly states our rights to a basic salary, plus any benefits and bonuses. Footballers and bankers have the same rights. Realistically, in any company, there will always be someone earning more than us, and someone earning less. I may work as an executive for a company, earning a nice tidy basic and the opportunity to receive a bonus based on company performance. The same company may employ a cleaner at just over basic wage, with no bonuses available. Who is the more worthy? I play a part in the running of the company and generating income, and get a deserved salary for it. The cleaner also has an important role, but won't get as much as me. I certainly don't feel that I should earn more than a nurse, or social worker, or teacher - but I might. It all boils down to one thing... money making. He who generates income gets paid more than those who don't, or who are dependent on public funds to pay their wages. Moral it ain't, but for those of us with no vocation to improve the world, it's great!

As for me, I will never be a footballer or a banker. Luckily, I have one son who aspires to investment banking, and one who's just started football training, so watch this space. They can use their bonuses to look after their old mum...