Cap to bankers salary Post Reply

[Mrs Contractor Mum]

Shares are paid out as dividends or profit that the company makes. So you own a share of the company, you make money for the company which in turn posts a profit and you the shareholder earns a share of that profit as a dividend.

Cash bonuses are different to shares in that the company does not have to post a profit in order to pay out a bonus. A bonus is added on to the earnings for the employee and is then taxed as PAYE and NICs.

You can have a look here for the percentage of tax paid on dividends: http://www.hmrc.gov.uk/taxon/uk.htm#2

[schoolgatesmum]

So let me get this straight. Banking is all about making profit from other people's money. Bankers are so brilliant at what they do that they need massive salaries and bonuses. But the banks don't need to post a profit to pay out bonuses. How does that work then? And according to Andrew Haldane (Executive Director of Financial Stability at the Bank of England) banks' average return between 1900 and 2009 was 3%. I'm pretty sure you can get more than that on an ISA.

[Mrs Contractor Mum]

Exactly schoolgatesmum

And lets not forget the wonderful situation we are in now means businesses trying to expand can't get a loan from high street or business banks anymore so instead rely on bankers bonuses investing as venture capitalists in order to take a share of that businesses profit too.

Where would our country be without them?

[schoolgatesmum]

I could just see this in a Monty Python sketch - what did the bankers ever do for us? Answers on a postcard please.....

[supergirl]

I cant agree more with you ladies - Mrs contractormum and Schoolgatemum.

[kiwimummy]

I think the general population would feel less miffed about banker bonuses if bonus culture had not been part of the reason that the taxpayer had to bail up some of those banks. Presently Bonuses structures promote short term thinking and incentive structures. These should be reconsidered to promote long term growth not short term reward.

Here's some of the wonderful things our banks have brought us in the last 5 years. They had to be bailed out to the tune of billions of pounds. They were caught fixing the libor rate for their own short term advantage. They were caught trading with Iran (standard chartered) and laundering Mexican cartel drug money (HSBC!) they missold ppi and interest rate swaps and endowment mortgages and pret much any other financial product you care to name.

You may see here why the wider population does not hold the special skills of bankers in any particular esteem.

If the cap is eu wide, I can't see it would create too much concern. Banks will structure around it anyway. They are very good at that!

[wasateacher]

I'm sorry, ladies, but clearly it is far too difficult for your little minds to understand!!!!!!!!!!!!!!!!!!!!!!!

Common sense obviously doesn't come into it, otherwise you would be in receipt of massive bonuses!

[Mrs Contractor Mum]

I wouldn't worry about it - the EU decision would need to be ratified by UK parliament and none of our political elite (left, right or sitting on the fence) would let that happen.

[clapset]

The UK hasn’t backed the move and stands alone.

That for me is a good thing – it means those that want to leave can. All HMRC needs to do is change the rules on “time” out of the country such that when they do come back they pay tax on their earnings in the UK. And they don't even need to be Usain Bolt to be caught. If you want to live in New York ... there’s the door. Might reduce the cost of housing in this area which would be a good thing.

Also – Supergirl... Whilst slapping yourself on the back because my original post was remove consider this – “Who cares?” ... is a question that should illicit one of two response – I do; or I don’t. May be then a view may be forthcoming thereafter.

As it is, your second post had no view, it merely said that you were in a conversation about the status of London as a financial hub ... prey tell was it with George Osborne? Is that the reason why he has chosen to stand alone vs the EU? Are you an expert on Geopolitics in the Western World, or merely happy to shout about my freedom of speech being curbed – obviously NVN terms and conditions apply but I don’t believe I broke any. Your post says nothing so I don’t get it? And I don’t think you do either ... unless you have been enlightened. In which case tell us.

Also consider this – if the civil service can’t find people because not enough money is being paid (200 application I believe you said) then the net result is the civil service should not employ for the post as it clearly isn't needed.

Wandsworth council are removing 2 senior directors. Why do they have directors? Why remove only 2 directors? They couldn’t direct traffic. However they can charge extortionate amounts of money for parking traffic. I worked in the civil service for 2 years and frankly found it laughable. As a career it was good for drinking and doing exercise. The guy that runs Wandsworth council is a career civil servant – and purportedly earns £190k pa – for what? There is no way on earth someone taking my money for organising a few green vans, some dude on bikes and the odd school should earn that amount of money. He needs a pay cut to redundant - nil point! – he should leave the borough council and by the way neither the Peterborough council nor Manchester Council would have him back on that money

Rant over ... smiley face! Freedom!

I'm now mildly amused ... someone tell me why the Man form the Council is worth the money ... please

Go on User Name Wandsworth Council - tell me ... dare you!

[juliantenniscoach]

190K for Leader of Wandsworth Council seems decent value to me compared to say 550k for Roger Draper head of the Lawn Tennis Association. Wholly funded by the profits of the Wimbledon Tournament and the taxpayer. Sorry we've really gone off on a tangent now!

[clapset]

Julian true we have. But you are wrong we are not off piste and here is why ...

The daft pay bankers receive has made all sorts of people - including Mr Wandsworth think they are worth the sort of cash that Real Bankers would have dreamed of in the 80's ... now dudes looking after cutting grass and Robinson's lemon squash think that they can take half a million quid out of grass roots sport to fund their Borish (note copyright Bahlam dad) lifestyles ...

no doubt he came out of industry like Crosier did to the FA and will jump from one job to the next earning money for nothing and leaving a trail in his wake. Frankly I'm jealous because I have to work hard for a pretty decent wage, hence I can afford to live in SW11, but I know a bit about grass so can I have 500k pa please ... I didn't inhale!

[schoolgatesmum]

This answers a lot of questions
http://www.blog.rippedoffbritons.com/20 ... s.html?m=1

[nvmof3]

The only banks which pay "big" bonuses are investment banks (not retail banks like Lloyds/Nat west/rbs etc who only pay big bonuses to board members) and most of those are foreign. If they don't pay their profits out in bonuses to their uk resident workforce, they will simply repatriate their profits back to their home counties. If they do pay bonuses to uk workers, 50% comes straight to hm taxes through paye and a lot of the rest is spent here by the bankers.

[nvmof3]

@schoolgatesmum "so where is this tax that bankers contributed?" - who do you think pays for the nhs. The top 1% of earners in this country (prob mostly bankers as entrepreneurs usually can get around taxes) pay 27.7% of our taxes. More than enough to cover the nhs cost.

[wasateacher]

nvmof3: the argument about what proportion of taxes is contributed by the wealthy is double edged. If they contribute that high a proportion, how on earth much are they being paid - we only know about some. Equally it could be argued that, by lowering their income and raising the salaries of the millions at the lower end, you can achieve the same tax benefit for the country, whilst at the same time having a more equal society - some countries have found this to be extremely beneficial to the happiness of all, including the richer elements.

At a time when people at the median or below are under increasing pressure to accept lower salaries and some elements of the public sector are having their salaries effectively reduced, we are not "all in it together".