Louis Winthorpe III: I had the most absurd nightmare. I was poor and no one liked me. I lost my job, I lost my house, Penelope hated me and it was all because of this terrible, awful Negro.
Break out the tiny violins. Some banksters are about to be forced to live on ramen and sadness:
Bonus season is fast approaching on Wall Street, but this year the talk does not center just on multimillion-dollar paydays. It’s about a new club that no one wants to join: the Zeros.
Drawn from a broad swath of back-office employees and middle-level traders, bankers and brokers, the Zeros, as they have come to be called, are facing a once-unthinkable prospect: an annual bonus of … nothing.
“It’s going to a cause a lot of panic on Wall Street,” said Richard Stein of Global Sage, an executive search firm. “Everybody is talking about it, but they’re actually concerned about it becoming public. I would not want to be head of compensation at a Wall Street firm right now.”
[...]
At Goldman, for instance, the base salary for managing directors rose to $500,000 from $300,000, while at Morgan Stanley and Credit Suisse it jumped to $400,000 from $200,000.
Even though employees will receive roughly the same amount of money, the psychological blow of not getting a bonus is substantial, especially in a Wall Street culture that has long equated success and prestige with bonus size. So there are sure to be plenty of long faces on employees across the financial sector who have come to expect a bonus on top of their base pay. Wall Streeters typically find out what their bonuses will be in January, with the payout coming in February.
One executive, whose firm prohibited discussing the topic with the news media, said the bump in base salaries had confused people, even though their overall compensation was the same. “People expect a big bonus,” this person said. “It is as if they don’t even see their base doubled last year.”
Dealing with the Zeros can be complicated. “It’s a real headache,” said another senior banker, who asked not to be identified because the topic is so volatile at his company. There has been so much grousing that in some cases, he said, “we’ll throw $20,000 or $25,000 at each of the Zeros so they’re not discouraged.”
My gawd. Only $25,000? You can’t even go in the showroom and sit in a C-Class for $25k. Might as well go fucking Galt…
But buck up, lil Zero, you can become a member, albeit a highly compensated member, of the Class Warfare class:
While Zeros are turning up in the ranks of back-office employees and midtier bankers and traders who typically earn $250,000 to $500,000, their bosses way up the compensation ladder are still expected to notch handsome paydays in the millions.
In terms of overall profit, Wall Street is on track for one of its best years ever, although it will trail 2009, which was pumped up by federal bailout money and the rebound from the financial crisis.
In the first three quarters of the year, Wall Street earned $21.4 billion, putting it on track to easily outpace 2006, when the economy was booming, and well ahead of the New York City government’s initial estimate of $20.6 billion for profit in all of 2010.
This year, Wall Street’s five biggest firms have put aside nearly $90 billion for bonuses.
That’s right, you get $25k out of a pool of $90 BILLION. How’s that feel? Like you’re getting pissed on? Yeah? Like that?
Well, it’s called “trickle down” and you’re soaking in it.
Enjoy.




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Wall Street Bankers are rapidly replacing lawyers as the most reviled profession in the world.
Frankly, it couldn’t happen to a nicer bunch of guys.
And there’s this:
The Commerce Department reports corporate profits have never been higher
The middle class has every reason to revolt against the actual elite but they’re still hoodwinked by the myth of the American dream and too embarrassed to admit they are suffering and scared shitless about what’s happening.
The Commerce Department reports corporate profits have never been higher
But in Teabagger-alternate-universe the economy sucks because the Obamunist hates capitalism and Murka and Jeebus, and CEOs won’t invest because their fee fees are hurt.
Hey, maybe they should move over to the UK, I hear they have a Conservative Prime Minister:
Cameron Urges Restraint Over ‘Galling’ Bank Bonuses
Its a tomato-tomahto thing. Over there, “conservative” tends to mean conservative, whereas Stateside, conservative means “Yeehaaw!”
No, that’s 90 billion for the top 5 firms, not 9 billion. Nine, zero, billion. For bonuses alone.
Which, now that I read it, doesn’t make any sense at all.
This year, Wall Street’s five biggest firms have put aside nearly $90 billion for bonuses.
If this figure is correct, I don’t exactly see what they are complaining about.
Wall Street Cash Bonus Pool*
1985: $2 billion
2000: $20 billion
2001: $13 billion
2002: $10 billion
2003: $16 billion
2004: $19 billion
2005: $22 billion
2006: $34 billion
2007: $38 billion
2008: $20 billion (industry lost record $42.6 billion)
2009: $21 billion
* figures only for NYC financial industry employees, and does not include stock options or other deferred compensation
Awwww, no bonuses?
I think we should start a bonus pool for these poor unfortunates.
Here’s a nickel. They can use it to buy a clue.
Thanks. My McArdle Action calculator doesn’t have a zero on it.
These people make me want to vomit.
Wait a minute. These 5 firms are paying $90 billion in bonuses to their employees and leaving only $20 billion for investors? That’s 82% of the $110 billion net earnings!
I’ve certainly never worked for anyone who took 82% of the year’s profits and distributed it to the employees instead of to the business’s owners. Where do I send my resume – I want in on this action.
It’s a Griswold family Christmas for the mid-level banksters. Somebody better call their Cousin Eddie!
Best idea, best comment.
I live on substantially less annual income than these unnamed “compensation managers” are planning to “toss” to the complainers.
If they find it inadequate, perhaps they’d like to toss it to me and a few other folks who live in different world.
These people produce nothing of value, most of what they do is destructive to society, the economy, and individuals, they’d be out of jobs altogether if not for us taxpayers bailing them out, and yet they feel “entitled” to huge amounts of money.
Down with (Wall Street) entitlements!
lessee. If I pay the rest of my utility bills for this month, I’ll only be about 35 bucks overdrawn.
Shall I lose sleep over the wha-wahs of Wall Street?
I think not.
I guess I’ll have to chin-up and eke out a sad existence on my $70K teachers’ salary.
Help them? Are there no richhouses? No tennis prisons?
In lieu of the bonuses they feel they deserve for ruining the world’s economy, can we kick each and every one of them in their asses 500,000 times (or more, depending on their job titles)?
My blood doesn’t boil any more. It sublimates straight to steam.
Who are these “people”?
Maybe we can setup a collection on Donor’s Choose. This seems like a worthy cause. We cannot let these producers get demotivated. Because then they may not grant us jobs.
“As long as the task involved only mechanical skill, bonuses worked as they would be expected: the higher the pay, the better the performance. But once the task called for ‘even rudimentary cognitive skill,’ a larger reward ‘led to poorer performance.’”
D Ariely, U Gineezy, G Lowenstein, and N Mazar, Federal Reserve Bank of Boston Working Paper No. 05-11, July 20005: NYTimes, November 20, 2008
In eight of the nine tasks we examined across the three experiments, higher incentives led to worse performance.
D Ariely, U Gneezy, G Lowenstein, and N Mazar, Federal Reserve Bank of Boston Working Paper No. 05-11, July 2005
Looked at 51 studies of pay for performance plans in a variety of companies: “We find that financial incentives… can result in a negative impact on overall performance.” Dr. Bernd Irlenbusch, London School of Economics
http://www.youtube.com/watch?v=u6XAPnuFjJc – RSA 10 minute video by Daniel Pink, author of _Drive: The Surprising Truth About What Motivates Us_ NY: Penguin Group, 2009 ISBN 978-1-59448-884-9
Turns out what really motivates people is purpose, autonomy, and mastery. Of course, hatred of greedy, whiny wankers who never deserved their good fortune or wealth works as well.
So I sez to myself, “That can’t be right. Must be $9B”
Nope. $90B. And if I read the article correctly, wealth inequality is growing even amongst the Wall Street class.