Mr. Chakrabortty I expect:
But here\’s the thing: banks are in such a fierce arms race over staff that a regulators\’ squeeze on bankers\’ bonuses will probably lead to a jump in their basic pay. As we report today, salaries for senior bankers have gone up three- or four-fold in the past 18 months alone. And it is more than likely that staff further down the pecking order will also enjoy similar rises over the coming months. Indeed, that is precisely what pay consultants are predicting.
There are two key messages to take from this. First, that no sooner will a regulator come up with a new guideline on pay or corporate behaviour, then top bankers will truffle out the loopholes. As we said, regulating City pay is tough. But the second implication is that these salaries are not justified. There is simply no justifying a 200% or 300% rise in top bankers\’ pay in the middle of a historic financial crisis that has required a state lifeline for the entire industry. No ifs, no buts, no caveats.
The two paragraphs manage to contradict each other.
An arms race over staff means that the banks are competing for some scarce resource: the people clever enough to do the work and yet stupid enough to be willing to work 70 hours a week.
In such a competition if you restrict one portion of the available compensation (the bonuses) then of course the other part of available compensation will rise. Which means that far from there being no justification for such rises in base pay, the rises are being forced on the banks by the restrictions upon bonuses.
You and your witterings have actually caused this, ignorant lefties.