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Wednesday, September 30, 2009

W/P = MP?

Bankers are, apparently, being rewarded generously for their fine performance in recent years:

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In 2008, salaries of the top 10 banks reached $75 billion (up from $31 billion in 1999), while cash dividends to shareholders were only $17.5 billion. Management took 4.3 times more than shareholders at a time when shareholders were injecting capital and government was guaranteeing deposits.

If people were really compensated according to the value they create, wouldn't bank managers would owe us money?

    Posted by on Wednesday, September 30, 2009 at 10:20 AM in Economics, Financial System | Permalink  Comments (18)

          


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