Quote:
Originally Posted by Maestro
To BigDog point, I many not understand how Banking and the Investment Industries bonus work. However I have worked for plenty of High tech companies who have all sorts of reward or bonuses plans for their employees. I have participated in most all of them over my career so Yes I like the perks and would not like to see them go away.
However I can say that every company I worked for never paid out the perks at the cost of share holders, employees or its customers. They also do not pay out massive x times the pay bonus to employees included the CEO.
I have no problem with people get reward for doing good or great things, but in banking and investment most time they are not doing good or great things, they just happen to benefit from others success. I know this a simplistic example, but why should a broker get a big bonus because he convince someone to buy Apple stock and then convince them to sell Apple stock when it jump 100 points. They did nothing here Apple employees created the wealth in Apple not some broker convincing some one to buy and sell, or better yet short the stock and create all sort of FUD about the company so they can make more money on the way down.
If these Banking industry felt so strongly about what they were doing then give everyone shares in the company verse cashing them out, no incentive to keep doing well since they know they already got all the cash before the shareholders and such.
Also when companies are in trouble and they bring in new management, if they are really that good do not pay them, give them stock and a $1 pay check. Since they will really hurt if they screw up and the upsides are greater if they are as good as they think.
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Maestro, you're only taking a one sided view on this.... the finance industry does provide a valuable service to you on some of the most basic levels....
Lets take the AAPL example you mentioned... in order to buy or sell that symbol you as a retail investor are going to be crossing the spread each time (buying the offer, selling the bid).... had the finance industry not been as prevalent.... you'd be loosing your shirt to cross the spread each time you'd want to exit or enter your position (bid/ask spread would be extremely wide).... by doing something as simple as providing liquidity, you're profiting every time you decide to execute the trade.... now multiply you by everyone else that wants to buy or sell..... its an astronomical figure.... so though it may seem of little value to you on the surface.... there is a significant value to it...