This is an interesting perspective. It is true that you have to adhere to trading restrictions working for a financial company. However, the premise is that the individual given the guaranteed bonus to compensate for the opportunity-cost would be able to at least make that amount of return on his/her investments without access to information from the company - basically on-their-own as the "regular Americans" do. That return is then riskless since it is guaranteed, unlike the regular American who can lose all his/her stake. So if the employee can indeed consistently get better than that bonus, why be an employee at all? Better to take a spot in "Market Wizards". And if he/she can't consistently do better, then they are getting the bonus for underperforming. And if Goldman didn't need the $$$, why give up it's leverage as an Investment Bank?
WTH is a guaranteed bonus? Isn t a 80k salary and a 20k guaranteed bonus, just a 100k salary? There s no such thing as a guaranteed bonus. I ll change that phrase. There shouldn t be a thing called guaranteed bonus.
Ok, now I'm convinced you are some lackey on behalf of Wall Street. A "useful idiot" who thinks he will get somewhere. The crisis is orchestrated...ehhh..caused by the DERIVATIVES that were written 10x over each mortgage by Wall Street. It's quite simple really. Give some shmoe a loan he cannot afford, backed by an inflated home price, then take the mortgage paper and write a bunch of worthless crap 10x over it (call it a bunch of fancy names like CMO, CDO, MBS, etc). Then sell as much of it as you can to whichever institutions are stupid enough to trust you (cause Wall Street is all about making the capital markets work for the people). Hold whatever you can't sell and mark it each quarter to show profits and growing assets. Pay those salaries and bonuses ASAP in large amounts before the scam is unfolded. Oh, and make sure you put any real cash you gathered from selling crap to work, like buying real assets. But don't forget to transfer them out, would not want any of this liability on them.
Why would it be riskless? One: I lost out big not being able to participate in the red hot commodities market. I would've made much more than what my bonus will be this year -- that is, if I don't get laid off before the bonus period. (See my other thread about my pathetic situation.) Two: As already stated, what if I get canned before the bonus period?
Look, I didn't invent the system. I'm telling you what's in my contract and the contracts of other people I know. They split the salary and call the year end portion of it a bonus.
Sorry - I am not questioning your sincerity, just examining your argument. 1) Losing out big on the red hot comm market would be a voluntary employment choice. I am not sure why anyone would need to be compensated for a deliberate choice. 2) Getting canned before bonus time is something ALL workers face - whether on Wall St or not. It is a non sequitur to getting a guaranteed amount.