Bonuses: Economic logic leads to a "paradox"
Paradox: a statement that is seemingly contradictory or opposed to common sense and yet is perhaps true.
The media in Europe are starting to call skyrocketing banker salaries across Europe the "bonus paradox."
The EU limit on bonuses to 100 percent of salary (or 200% with shareholder approval) is ushering a paradoxical parade of unintended consequences. But just because consequences are unintended doesn't mean they are unpredictable.
The economic ignoranti fully expected overall banker pay to be clipped by the EU measure. José Manuel Barroso, president of the European Commission said,Bonus “This is a question of fairness." So, there it is." read more