David Buik: It's time to stop this bonus bashing and get on with the rebuilding

Here we go again. We have stepped aboard the old bankers' bonus bashing merry-go-round, where angst and hatred are spewed out with tiresomely monotonous regularity. Really. Hasn't everyone got bored of this yet? It's worth remembering that the banks will be paying out proportionately less than in previous years. However, as their recovery has been dramatic the net figure payable is up by perhaps as much as 30 per cent.

Before everyone reaches for their shotguns, just remember that this time most bonuses will come as share-option scheme payments (60 per cent) that are payable over three years and subject to clawback.

The politicians will no doubt be incandescent with rage, conveniently using the banks as easy prey to cover up their own inadequacies. Messrs Brown, Darling & Co are equally as culpable for the recession as is a small coterie of irresponsible bankers . The UK Government was completely consumed by the former Fed chairman Alan Greenspan's relentless quest to get banks to lend money indiscriminately, with inadequate regulatory controls, to all comers – which included absolutely absurd mortgage lending.

Today, Stephen Hester of RBS will be grilled by the Treasury Select Committee. In RBS's defence, its decks have been cleared. RBS needs to recover quickly. It would be folly to deny it the tools of the trade, one of which is the incentive to employ the very best. The Government should be grateful that it may glean as much as £5bn for its coffers from this windfall "super-tax".

The country needs to get over its revulsion and outrage and concentrate its efforts in getting the financial show back on the road. Strong banks are an essential ingredient, so don't throw the baby out with the bath water. New regulation will take care of risk/reward ratios.

The Government does not seem to believe that capital and banking personnel are very mobile. It would be best if it started to believe it soon. Suitable alternative arrangements for some banks in other countries are under consideration.



David Buik is a partner at the money broker BGC Partners

Start your day with The Independent, sign up for daily news emails
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Payments Operations Assistant

£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...

Recruitment Genius: Telephone Debt Negotiator

£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...

Guru Careers: Communications Exec / PR Exec

£25 - £30K: Guru Careers: We are seeking a highly-motivated and ambitious Comm...

Guru Careers: Pricing Analyst

£30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...

Day In a Page

On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific
In this the person to restore our trust in the banks?

In this the person to restore our trust in the banks?

Dame Colette Bowe - interview
When do the creative juices dry up?

When do the creative juices dry up?

David Lodge thinks he knows
The 'Cher moment' happening across fashion just now

Fashion's Cher moment

Ageing beauty will always be more classy than all that booty
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination

Health fears over school cancer jab

Shock new Freedom of Information figures show how thousands of girls have suffered serious symptoms after routine HPV injection
Fifa President Sepp Blatter warns his opponents: 'I forgive everyone, but I don't forget'

'I forgive everyone, but I don't forget'

Fifa president Sepp Blatter issues defiant warning to opponents
Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report

Weather warning

Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report
LSD: Speaking to volunteer users of the drug as trials get underway to see if it cures depression and addiction

High hopes for LSD

Meet the volunteer users helping to see if it cures depression and addiction
German soldier who died fighting for UK in Battle of Waterloo should be removed from museum display and given dignified funeral, say historians

Saving Private Brandt

A Belgian museum's display of the skeleton of a soldier killed at Waterloo prompts calls for him to be given a dignified funeral