In the financial world, bonus disappointment is cause for anguish, outrage, and sometimes a job change.
Rather than enjoy guides on how to splurge on a foreign bolt-hole, victims are left instead to write pseudonymous columns about how the UK Labour opposition party leader Jeremy Corbyn's views now pervade the corner office.
When even Deutsche Bank pays bonuses, it seems unfair not to get what you think you deserve. But what if we lived in a world without bonuses?
Think about it: a job with a fixed salary, above current levels, with dollops of long-term incentives paid out over decades. There would be a pension, and corporate perks - and that's it.
No more door-slamming, Corbyn-baiting, property-boosting windfalls, and perhaps even a slightly less yawning gender pay gap. The debate so far has been restricted to what kind of limits, if any, should be applied to variable compensation. European regulators already cap bonuses at twice base pay with shareholder approval. The City of London has bristled at this. Even the Bank of England governor England Mark Carney has suggested it could be reversed.
But there are some banks that voluntarily don't pay bonuses, like Sweden's Handelsbanken. There, pay is almost all fixed, isn't tied to sales targets, and the company's incentive plan only pays out when an employee turns 60.
Before you scoff at the idea of a bank stuffed with lazy jobsworths, note that Handelsbanken's stock has doubled in ten years, while the European sector's has halved. The bank's UK head Mikael Sorensen says a life without bonuses is "wonderful".
There are also banks that don't pay bonuses because, well, they can't. Firms bailed out by the Irish taxpayer were banned from paying bonuses and salaries were capped at €500,000 (Dh2.26 million).
Sure, competing on the world stage with pay caps can make hiring "difficult" - that's how Allied Irish Banks (AIB) put it last year - but investors still lapped up AIB's IPO. Its shares even trade at a premium to book value, unlike many of peers.
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Read more:
Global big banks to lose up to 15% of revenue from trading stocks in Europe, Coalition says
Deutsche Bank starts cutting global workforce
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Does this mean every bank should follow suit? There are objections. Some argue No Bonus Bank would bleed star performers. But, if salaries remained competitive, many of the people left behind would be those who actually wanted to do the job. Psychologist Dan Ariely's research suggests offering short-term financial incentives to people who don't actually want to do the work can actually lead to worse, not better, performance.
You might also imagine No Bonus Bank would have a lower tolerance for risk than rivals, and that's no bad thing. In the run up to the crisis, traders were tempted to be more aggressive in the short term, safe in the knowledge they could jump to an equally lucrative job elsewhere before long-term losses materialised. A reward programme stepped over many years could help blunt that.
A 2014 Cornell Law paper found that the more a bank used short-term incentive packages for non-executive staff (ie traders) from 2003 to 2006, the greater the boost to its excess shareholder returns during 2007-2009 - but also, the greater the hit to the market value of the bank's assets, relative to their book value. A reliance on short-term pay incentives led to inefficient behaviour and risk management, according to the paper.
Now, clearly, not every bank can afford to inhibit the risk impulse. There may be less incentive to take good, profitable risks if all rewards are the same. But do all employees beyond a tiny core of risk-takers need variable pay?
Handelsbanken, for example, only allows about 2 per cent of employees to depart from the no-bonus rule - and they can't earn fee-based profits or deal in transactions that subject the bank to credit, market or liquidity risk. Now consider that 64 per cent of high-earning bankers in Europe have a material impact on institutional risk, according to regulators. Is a bonus the best form of remuneration for them?
Deutsche Bank chief executive John Cryan once said he had no idea why he was offered a bonus.
Shareholders would be within their rights to ask why so many bankers are offered them.
Bloomberg
Friday’s fixture
6.15pm: Al Wahda v Hatta
6.15pm: Al Dhafra v Ajman
9pm: Al Wasl v Baniyas
9pm: Fujairah v Sharjah
.
Mountain Boy
Director: Zainab Shaheen
Starring: Naser Al Messabi
Rating: 3/5
The past Palme d'Or winners
2018 Shoplifters, Hirokazu Kore-eda
2017 The Square, Ruben Ostlund
2016 I, Daniel Blake, Ken Loach
2015 Dheepan, Jacques Audiard
2014 Winter Sleep (Kış Uykusu), Nuri Bilge Ceylan
2013 Blue is the Warmest Colour (La Vie d'Adèle: Chapitres 1 et 2), Abdellatif Kechiche, Adele Exarchopoulos and Lea Seydoux
2012 Amour, Michael Haneke
2011 The Tree of Life, Terrence Malick
2010 Uncle Boonmee Who Can Recall His Past Lives (Lung Bunmi Raluek Chat), Apichatpong Weerasethakul
2009 The White Ribbon (Eine deutsche Kindergeschichte), Michael Haneke
2008 The Class (Entre les murs), Laurent Cantet
THREE
Director: Nayla Al Khaja
Starring: Jefferson Hall, Faten Ahmed, Noura Alabed, Saud Alzarooni
Rating: 3.5/5
Company Profile
Name: Direct Debit System
Started: Sept 2017
Based: UAE with a subsidiary in the UK
Industry: FinTech
Funding: Undisclosed
Investors: Elaine Jones
Number of employees: 8
Company name: Play:Date
Launched: March 2017 on UAE Mother’s Day
Founder: Shamim Kassibawi
Based: Dubai with operations in the UAE and US
Sector: Tech
Size: 20 employees
Stage of funding: Seed
Investors: Three founders (two silent co-founders) and one venture capital fund
TWISTERS
Director:+Lee+Isaac+Chung
Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos
Rating:+2.5/5
SPEC SHEET: NOTHING PHONE (2a)
Display: 6.7” flexible Amoled, 2412 x 1080, 394ppi, 120Hz, Corning Gorilla Glass 5
Processor: MediaTek Dimensity 7200 Pro, 4nm, octa-core
Memory: 8/12GB
Capacity: 128/256GB
Platform: Android 14, Nothing OS 2.5
Main camera: Dual 50MP main, f/1.88 + 50MP ultra-wide, f/2.2; OIS, EIS, auto-focus, ultra XDR, night mode
Main camera video: 4K @ 30fps, full-HD @ 60fps; slo-mo full-HD at 120fps
Front camera: 32MP wide, f/2.2
Battery: 5000mAh; 50% in 30 mins w/ 45w charger
Connectivity: Wi-Fi, Bluetooth 5.3, NFC (Google Pay)
Biometrics: Fingerprint, face unlock
I/O: USB-C
Durability: IP54, limited protection from water/dust
Cards: Dual-nano SIM
Colours: Black, milk, white
In the box: Nothing Phone (2a), USB-C-to-USB-C cable, pre-applied screen protector, SIM tray ejector tool
Price (UAE): Dh1,199 (8GB/128GB) / Dh1,399 (12GB/256GB)
SPECS: Polestar 3
Engine: Long-range dual motor with 400V battery
Power: 360kW / 483bhp
Torque: 840Nm
Transmission: Single-speed automatic
Max touring range: 628km
0-100km/h: 4.7sec
Top speed: 210kph
Price: From Dh360,000
On sale: September
UAE Team Emirates
Valerio Conti (ITA)
Alessandro Covi (ITA)
Joe Dombrowski (USA)
Davide Formolo (ITA)
Fernando Gaviria (COL)
Sebastian Molano (COL)
Maximiliano Richeze (ARG)
Diego Ulissi (ITAS)
Other simple ideas for sushi rice dishes
Cheat’s nigiri
This is easier to make than sushi rolls. With damp hands, form the cooled rice into small tablet shapes. Place slices of fresh, raw salmon, mackerel or trout (or smoked salmon) lightly touched with wasabi, then press, wasabi side-down, onto the rice. Serve with soy sauce and pickled ginger.
Easy omurice
This fusion dish combines Asian fried rice with a western omelette. To make, fry cooked and cooled sushi rice with chopped vegetables such as carrot and onion and lashings of sweet-tangy ketchup, then wrap in a soft egg omelette.
Deconstructed sushi salad platter
This makes a great, fuss-free sharing meal. Arrange sushi rice on a platter or board, then fill the space with all your favourite sushi ingredients (edamame beans, cooked prawns or tuna, tempura veggies, pickled ginger and chilli tofu), with a dressing or dipping sauce on the side.
MEDIEVIL (1998)
Developer: SCE Studio Cambridge
Publisher: Sony Computer Entertainment
Console: PlayStation, PlayStation 4 and 5
Rating: 3.5/5
MATCH INFO
UAE Division 1
Abu Dhabi Harlequins 12-24 Abu Dhabi Saracens
KEY DATES IN AMAZON'S HISTORY
July 5, 1994: Jeff Bezos founds Cadabra Inc, which would later be renamed to Amazon.com, because his lawyer misheard the name as 'cadaver'. In its earliest days, the bookstore operated out of a rented garage in Bellevue, Washington
July 16, 1995: Amazon formally opens as an online bookseller. Fluid Concepts and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought becomes the first item sold on Amazon
1997: Amazon goes public at $18 a share, which has grown about 1,000 per cent at present. Its highest closing price was $197.85 on June 27, 2024
1998: Amazon acquires IMDb, its first major acquisition. It also starts selling CDs and DVDs
2000: Amazon Marketplace opens, allowing people to sell items on the website
2002: Amazon forms what would become Amazon Web Services, opening the Amazon.com platform to all developers. The cloud unit would follow in 2006
2003: Amazon turns in an annual profit of $75 million, the first time it ended a year in the black
2005: Amazon Prime is introduced, its first-ever subscription service that offered US customers free two-day shipping for $79 a year
2006: Amazon Unbox is unveiled, the company's video service that would later morph into Amazon Instant Video and, ultimately, Amazon Video
2007: Amazon's first hardware product, the Kindle e-reader, is introduced; the Fire TV and Fire Phone would come in 2014. Grocery service Amazon Fresh is also started
2009: Amazon introduces Amazon Basics, its in-house label for a variety of products
2010: The foundations for Amazon Studios were laid. Its first original streaming content debuted in 2013
2011: The Amazon Appstore for Google's Android is launched. It is still unavailable on Apple's iOS
2014: The Amazon Echo is launched, a speaker that acts as a personal digital assistant powered by Alexa
2017: Amazon acquires Whole Foods for $13.7 billion, its biggest acquisition
2018: Amazon's market cap briefly crosses the $1 trillion mark, making it, at the time, only the third company to achieve that milestone
THE SPECS
Aston Martin Rapide AMR
Engine: 6.0-litre V12
Transmission: Touchtronic III eight-speed automatic
Power: 595bhp
Torque: 630Nm
Price: Dh999,563