You’re in a room full of politicians and you’re the most disliked person – now that’s an achievement. Well done Bob Diamond – that’s talent worth paying for. But I feel sorry for bankers. No one stands up for the poor worker, the poor proletariat like Bob Diamond. He is after all a worker and now we have a right-of-centre government – surely someone should defend the poor worker. I hope the unions are supporting higher pay.
First the bankers try to destroy capitalism through creating the credit crunch, now they do it by delivering zero shareholder returns. Barclays shareprice is at its 1997 levels. Hang on – how much talent does it take to deliver absolutely zero shareholder return over 14 years? Quite a lot of talent, just not the type you want running a company. And the bankers argue they need to be paid to attract global talent. Well if global talent brings you a credit crunch and zero shareholder value creation – then maybe you’re not worth £14m. I’m just old-fashioned.
Ummm…surely banks should know which way a share price is meant to go. Don’t they claim to be in the wealth creation business? They can’t do it to their own shareprices and create wealth for the poor pension fund shareholders. But then again – those fund managers picking the banking stocks are getting bonuses for non-performance too.
It’s like they’ve taken the old share investment warning of ‘past performance is no guide to the future’ and said ‘hey don’t judge me by my performance, but pay me what my colleagues get’.
What are you being paid for – keeping a FTSE 100 company afloat? They’ve lowered the bar so much to getting £14m in pay that it’s a wonder my cleaner isn’t applying.
Anyway the management of BG Group managed to deliver a six-fold return to shareholders over the same period. I bet their CEO didn’t get £14m pay. It’s a FTSE 100 company. It’s no more complicated than a bank. So once again: why is the banker getting £14m? No, swap the management of Barclays with BG Group instead.
The problem is they have politician attacking bankers – the hated attacking the more hated. No it should be pension funds who are shareholders who should be attacking the bankers. Why aren’t they complaining? Are you kidding? They don’t want someone asking ‘why did you buy Barclays stock and don’t you get a bonus for poor performance too Mr fund manager? In fact don’t your returns mimic those of Barclays – don’t you collect fees regardless of generating profits for me too?’ They’re in the same boat. So who suffers? The powerless pensioner.
But its okay, we have politicians defending us! Not one asking the critical question of ‘if you’re worth £14m then why can’t you add shareholder value and your non-banker FTSE 100 colleagues can on a fraction of your salary?’
When they pay out so much to so few, they cut the Bank’s profits and so no wonder the share price is floored. It’s a collusion between banks to keep their profits at a level that never sees shareholder value returned.
Instead the workers have taken over – sadly only a few of them. Socialism is alive and well and has defeated capitalism. Short live the revolution.