Can your average business set aside 47% of revenue for Compensation? Goldman Sachs does. Most businesses actually pay more than that percentage, as well as high Costs for capital, utilities, materials, and Advertising. Banks, on the other hand with inclusion of the Investment banks, use other peoples’ Cash to function, paying less and charging more for the Cash which they utilize. The Fed had presented a wonderful flush of Cash, and Wall Street has come up with the beautiful concept that the Compensation fund should not underwrite the bad loan discount fund; this means that Employees uses no caution is the extension of other peoples’ funds to any idiot who applies. One has to ask if such a level of Compensation is so necessary, and also where else could these individuals go to get equivalent levels of Compensation.
Great Britain is facing the same Compensation trouble as Wall Street, where somehow their Employees are going to find greater Pay elsewhere, if they don’t give huge amounts to their Employees in London. The Government has proposed a heavy tax, I think hoping to raise significant revenue–a forlorn hope. I would pass a law delaying Compensation bonuses for a payment Period after 40% of the extended instruments have been paid off, just to make sure that the instruments were of quality. This should provide about a 4-year lag in Compensation payment, and actually pay for something of benefit. The law could even insist that such Compensation bonuses could be automatically cut by 20% under the case that the Employee has ceased working for the Employer; all of this to ensure some value deriving from the bonuses for the Employer.
I will break pattern with the last paragraph, thinking to include this interesting set of charts from Felix Salmon. The amount of information processed is truly amazing, especially as a major portion has been subtracted as Work-related. I have to ask a TV watcher how much could possibly be redacted as previously viewed material. I do know that about 40% of all telephone communication consists of trash talk about the health of family and friends, which presents no actionable activity; it is the old Press-the-Flesh brought Us from Politicians, but where no conversation can be conducted without some personal touch–else We are simply talking to a spouting machine. Music still has sanctuary for the Soul, but when was the last time you were allowed to simply listen, instead of multi-tasking or being bombarded by Advertising? We might actually have less Pay, and more Employment, if We allowed the individual to relax a little. lgl