@number10gov Stephen Hester attempts to justify bonus culture in Andrew Marr propaganda piece

Hester (he of the RBS farce) was trotted out on the Andrew Marr show, to justify the bonus culture.

He sounded like a nice, reasonable guy but he must be thick if he genuinely believes that his incentives are comparable to the bonuses issued to car dealers.

Starting from from point of a bonus (Latin: means “good”) being meant to reflect that the recipient is being rewarded for doing something which has benefitted the company, above and beyond their basic pay.

Car dealers get a low basic pay, even if they are the best in the Land. They rely on their bonuses to make a decent living.

Bankers get paid an exceptionally high basic, because they have been deemed by someone as being exceptionally able.

But a car dealer has to be good at making money. He gets a percentage of the profit from each sale.

A banker gets a bonus, which may be more than his basic salary, even if he sells services at below cost price. I.e. even if he loses his employer’s money.

If a car dealer sold a car at less than cost, he would not only be sacked, he might well be sued.

To be fair to Hester, he did promise that the Tax-payer would get back the full amount that was paid for this millstone around our collective necks.

But can we believe him?  Is he duplicitous as any politician? Is he naive? Or, is he a(n) honest man, who will prove that he, at least was deserving of his “bonus”?

The sale of Northern Rock to Virgin at a huge loss doesn’t inspire confidence.

The stated hope, by Robert Peston, that ” taxpayers’ 82% stake in the bank can be privatised at something more than 51p per share we paid for it” suggests that this is the view being aired in Government circles (probably licking their lips, whilst voicing it). Again, not very encouraging.


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