Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Strict Standards: Declaration of UserSettings::get() should be compatible with AbstractSettings::get($col_key1, $col_key2 = NULL, $col_key3 = NULL) in /home/marketch/public_html/blogs/inc/users/model/_usersettings.class.php on line 0

Strict Standards: Declaration of UserSettings::set() should be compatible with AbstractSettings::set() in /home/marketch/public_html/blogs/inc/users/model/_usersettings.class.php on line 0

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 304

Warning: Cannot modify header information - headers already sent by (output started at /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php:223) in /home/marketch/public_html/blogs/inc/sessions/model/_session.class.php on line 222

Strict Standards: Declaration of BlogCache::get_option_list() should be compatible with DataObjectCache::get_option_list($default = 0, $allow_none = false, $method = 'get_name', $ignore_IDs = Array) in /home/marketch/public_html/blogs/inc/collections/model/_blogcache.class.php on line 0

Strict Standards: Declaration of Blog::dbupdate() should be compatible with DataObject::dbupdate($auto_track_modification = true) in /home/marketch/public_html/blogs/inc/collections/model/_blog.class.php on line 54

Strict Standards: Declaration of Blog::set() should be compatible with DataObject::set($parname, $parvalue, $make_null = false) in /home/marketch/public_html/blogs/inc/collections/model/_blog.class.php on line 54

Strict Standards: Declaration of CollectionSettings::_load() should be compatible with AbstractSettings::_load($arg1 = NULL, $arg2 = NULL, $arg3 = NULL) in /home/marketch/public_html/blogs/inc/collections/model/_collsettings.class.php on line 0

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Strict Standards: Declaration of Skin::dbupdate() should be compatible with DataObject::dbupdate($auto_track_modification = true) in /home/marketch/public_html/blogs/inc/skins/model/_skin.class.php on line 0

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Strict Standards: Declaration of ItemListLight::query() should be compatible with Results::query($create_default_cols_if_needed = true, $append_limit = true, $append_order_by = true, $query_title = 'Results::Q...') in /home/marketch/public_html/blogs/inc/items/model/_itemlistlight.class.php on line 48

Notice: Array to string conversion in /home/marketch/public_html/blogs/inc/_core/_param.funcs.php on line 1199

Notice: Array to string conversion in /home/marketch/public_html/blogs/inc/_core/_param.funcs.php on line 1199

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Strict Standards: Declaration of GenericCategoryCache::clear() should be compatible with DataObjectCache::clear($keep_shadow = false) in /home/marketch/public_html/blogs/inc/generic/model/_genericcategorycache.class.php on line 49

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 304

Strict Standards: Declaration of GenericCategory::set() should be compatible with DataObject::set($parname, $parvalue, $make_null = false) in /home/marketch/public_html/blogs/inc/generic/model/_genericcategory.class.php on line 45

Strict Standards: Declaration of Chapter::dbupdate() should be compatible with DataObject::dbupdate($auto_track_modification = true) in /home/marketch/public_html/blogs/inc/chapters/model/_chapter.class.php on line 38

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Cannot modify header information - headers already sent by (output started at /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php:223) in /home/marketch/public_html/blogs/inc/_core/_template.funcs.php on line 59
Bonus time ahead!
Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Strict Standards: Declaration of ComponentWidget::set() should be compatible with DataObject::set($parname, $parvalue, $make_null = false) in /home/marketch/public_html/blogs/inc/widgets/model/_widget.class.php on line 0
  • Home

  • Strict Standards: Declaration of ItemTypeCache::get_option_array() should be compatible with DataObjectCache::get_option_array($method = 'get_name', $ignore_IDs = Array) in /home/marketch/public_html/blogs/inc/items/model/_itemtypecache.class.php on line 0

    Strict Standards: Declaration of User::dbupdate() should be compatible with DataObject::dbupdate($auto_track_modification = true) in /home/marketch/public_html/blogs/inc/users/model/_user.class.php on line 0

    Strict Standards: Declaration of User::dbdelete() should be compatible with DataObject::dbdelete() in /home/marketch/public_html/blogs/inc/users/model/_user.class.php on line 0

    Strict Standards: Declaration of User::set() should be compatible with DataObject::set($parname, $parvalue, $make_null = false) in /home/marketch/public_html/blogs/inc/users/model/_user.class.php on line 0
  • Contact
  • Log in
 
« Effect of bank bail outsInformation cascades »

Bonus time ahead!

12/03/07


Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334
Bonus time ahead!

Permalink 06:34:36 am, by editor of MarketObservation.com Email , 428 words   English (US)

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334
Categories: News, Research

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Bonus payments are ahead in many banks. This year distributing bonuses might be a particularly difficult task for top management in banks with various business segments such as wealth management and investment banking under one roof. Let us assume that investment bankers have lost a lot of money in the subprime crisis and that their division consequently generated losses whereas the bankers in the wealth management division have created big profits.

Bank`s top management has to give a clear signal that it is well positioned to solve the crisis caused by the investment bankers. "Giving clear signal" means a.o. measures to cut bonuses. What happens if you substantially cut the bonus of a New York or London based investment banker (even if he was part of a team that has created huge losses)? - he probably leaves. If the bank sticks to both wealth management and investment banking, allocating bonuses to the various divisions becomes more a political than a reward oriented task.

What`s the sense of organizational structures which incorporate completely different businesses under one roof?

Organizational research gives essentially technological reasons for its existence. Examples are information processing, supervision, task assignment and the coordination of interactions across activities.

The activities between wealth management and investment banking might be rather minor..

Organizational structures should be developed in order to maximize the organization`s effectiveness and ressource allocation. Ressources should mainly be allocated to divisions with exzellent risk adjusted returns and the biggest growth projects. Within a bank with wealth management and investment banking this would most likely be the wealth management division.

In times of bonus allocation, as mentioned above, top management might realize that structures could become the battle ground for political contest. The structural position of management plays an important role in such political contest. As long as the bank intends to keep its loss making investment banking business, the management of this division will have a quite strong negotiation power. They will argue that the market for investment bankers is very efficient and that people will leave if they do not get a substantial bonus.

That is no meritocracy anymore! Such problems could be overcome with structures which make a clear separation between investment banking and the rest of the businesses. "Clear" includes also a (partial) separation of shareholders. Investors who like investment banking type of businesses might have a completely different risk profile than investors who choose to invest in long-term oriented wealth management type of businesses.

City bonuses: after the long feast, time for some famine, Guardian unlimited, Dec. 2, 2007

Search

XML Feeds

D. Kahneman on his book "Thinking, Fast and Slow"
________________________________________________________________________
April 2014
Sun Mon Tue Wed Thu Fri Sat
 << <   > >>
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30      
powered by b2evolution