My burning question on bankers’ bonuses and CEOs’ salaries

10th November 2011 by

Not very often, but once in a while, a top-tier banker or CEO will appear in a broadcasting studio or broadsheet newspaper interview and be asked: Are you worth it? Do you deserve it?

It seems the answer they give is always yes, sometimes with some humility and sometimes all-guns-blazing, arguing that their know-how and talent creates wealth for the rest of society.

George Monbiot this week pointed to research showing that bankers’ performances are no better than if they had thrown dice to make investment decisions. But, as he admits, present them with this evidence and it often makes no difference to their self-belief.

For me, these TV studio encounters are frustrating. There is a burning question I want to see the financiers answer. I think it would be illuminating and help blow some fresh air through the debate, opening up an important angle that’s often not looked at.

It’s not ‘Are you worth your salary?’ It’s not ‘Isn’t the gap between the richest and poorest hurting the whole of society?’ – though these are important questions.

It’s:

“Why do you want so much more money than anyone actually needs?”

Pressing them to answer this question would make for an absolutely riveting interview. Many of the honest, or even dishonest, answers I can imagine being given would confront viewers, and perhaps the interviewees, with the question of how much wealth and how much consumption is enough, and how much is moral.

What might the honest answers be? Here are a few guesses:

“I want to earn enough so that I can move only in circles of similarly rich people and so I don’t have to mix with ordinary people unless I choose to.”

“I like to know that I possess more money than I could spend because the knowledge of this abstract wealth gives me a feeling of security and self-affirmation.”

“I want to buy stuff: Rolexes, swimming-pools, multiple homes with more rooms than I can use, haute couture, yachts, limousines, racehorses and private jets.”

“I want to reach that point where my wealth is so great that I can live off the interest on my existing wealth without having to do work that is actually productive.”

“I want to live with and die with more money and material possessions than 99% of human beings.”

“I want my children to go through life knowing only ease and total material security, provided for in every way so they don’t have to learn how to make their own way in the world.”

Their claims that they deserve their remuneration seem to convince some people, even some of those who can never hope to earn such sums themselves but respect those who have been able to.

But what would it do to the debate to air this question of what we might want enormous incomes for? Many people, most likely, would still identify with these desires, still want them for themselves and still see them as legitimate and justified reward for supposedly hard work and irreplaceable talent.

Many others, though, might find themselves feeling new disgust, anger, alienation or even pity towards those who want incredible wealth.

Airing the question, though, would help bring out some deep questions for all of us, because the gap between top-flight financiers and the rest of us arguably has a parallel in the difference between most of us in rich industrialised countries and the vast majority of the world’s people who would regard our lifestyles as those of kings and emperors.

It would put on the table for all us the question of how much is enough, whether there is a gap between what we desire materially what we need to live decently, whether our desires are compatible with natural limits and others’ well-being, and what we are prepared to forego for the greater good and greater equality.

This is an increasingly important question, because if we cling to a sense of entitlement to riches and great material ease, but the economy and declining available energy make these less and less attainable, the anger that may result can take ugly political directions into scapegoating and extremism. We all need to be prompted to re-evaluate what we can collectively afford to have and afford to desire.

So come on, Paxman, give it a shot.

4 Responses to “My burning question on bankers’ bonuses and CEOs’ salaries”

  1. Kerry Lane says:

    Brilliant idea! Why not? It is the question we should be asking so lets get out there and ask it. Where can I find these stinking rich people to ask?

  2. Gavin says:

    Hmm, not sure! But the question applies to most of us in the ‘global North’, if we’re honest with ourselves.

  3. Robin says:

    Neat piece; on the money, as it were. I think that the Fat Cat Banker can often get abstracted and caricatured when talking about the state of the economy. It’s time we started tackling the spiritual void lying at the heart of this mess.

  4. Andy Triggs says:

    Bankers are greedy, vets love animals – that’s the way it works. It’s frustrating, but the wrong thing to waste energy on! The key issue is monetary reform which changes the way money is created, and moves us away from fractional reserve banking. The current problems are due to a failure of the state, and an inevitable (though perhaps premature) outcome of the use of a fiat currency.


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