More on AIG bonuses
A few days ago, Nate Silver had a good post over at FiveThirtyEight on this subject:
Just think about some of the implications of this [the 90% tax on bonuses passed by the House].
A senior engineer at General Motors, who shepherds the production of a new hybrid vehicle that will turn out to be a best-seller, shouldn't get a bonus for that. Really?
Jamie Dimon at JP Morgan, who has managed his company's assets adeptly and kept it mostly off the taxpayer's dole, is no more deserving of a bonus than an AIG crook. Really?
An mid-level investment banker at Morgan Stanley, who works her butt off to persuade her bosses to facilitate a deal for a new wind-power company that turns out to be a big economic and environmental winner, should have her incentive compensation taxed at 90%. Really?
An administrative assistant at PNC, who is volunteering to work 70-hour weeks because of cutbacks in the company's staff, deserves a Christmas Bonus -- unless her husband happens to be a lawyer earning $250,000 per year, in which case it should be taken away. Really?
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