End Bonuses For Bankers

theodp writes "NYU risk engineering prof Nassim Nicholas Taleb has a suggestion that won't sit too well with the banksters. In his NY Times op-ed, Taleb writes: 'I have a solution for the problem of bankers who take risks that threaten the general public: Eliminate bonuses.' The problem with the bonus system, Taleb explains, is that it provides an incentive to take risks: 'The asymmetric nature of the bonus (an incentive for success without a corresponding disincentive for failure) causes hidden risks to accumulate in the financial system and become a catalyst for disaster. This violates the fundamental rules of capitalism; Adam Smith himself was wary of the effect of limiting liability, a bedrock principle of the modern corporation.'"

Comments

you fools simply do not understand capitalism

[jollyreaper]

Look, you have to pay top dollar for top talent. It's just that simple. People who are good at what they do don't work for free; they don't even work for cheap. Top performers would rather starve to death than be insulted with remuneration that's a penny less than what they deserve. You want the best, you better pay for it.

Conversely, everyone else loves working for bottom dollar because they're grateful to have a fucking job. I put an add in the paper and there's a hundred people lined up out the door tomorrow hungry and ready to work. Learn to make due with less. Austerity is the new prosperity. Survival is the new American Dream. You want to be paid more? Start your own goddamn company, you cocksucking hippie!