Bonus Reform? Try Bogus Reform.

More

After the deluge comes the yacht party. A new year, a new bonus season for investment banks--with payouts a lot bigger than last year's and in some cases probably approaching the records hauls of the boom years. The United Kingdom has passed new rules requiring banks to hold back most bonuses for three years to keep bankers from walking out the door rich just before the whole edifice collapses. American banks are trying to find ways to make their payouts more politically palatable and, as the Wall Street Journal reports, shifting some of the cash bonanza into "restricted shares"--stock that can't be sold for several years.

You may imagine that, after the furor of the last year, all this means that investment bankers will be paid substantially less. It doesn't. It might take more time for them to get their money, but the likelihood is that the new pay rules will ultimately mean bankers get paid more.

Jump to comments
Presented by

Daniel Indiviglio was an associate editor at The Atlantic from 2009 through 2011. He is now the Washington, D.C.-based columnist for Reuters Breakingviews. He is also a 2011 Robert Novak Journalism Fellow through the Phillips Foundation. More

Indiviglio has also written for Forbes. Prior to becoming a journalist, he spent several years working as an investment banker and a consultant.
Get Today's Top Stories in Your Inbox (preview)

Why Do People Love Times Square?

A filmmaker asks New Yorkers and tourists about the allure of Broadway's iconic plaza


Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Why Do People Love Times Square?

A filmmaker asks New Yorkers and tourists about the allure of Broadway's iconic plaza

Video

A Time-Lapse of Alaska's Northern Lights

The beauty of aurora borealis, as seen from America's last frontier

Video

What Do You Wish You Learned in College?

Ivy League academics reveal their undergrad regrets

Video

Famous Movies, Reimagined

From Apocalypse Now to The Lord of the Rings, this clever video puts a new spin on Hollywood's greatest hits.

Video

What Is a City?

Cities are like nothing else on Earth.

Writers

Up
Down

More in Business

Just In