Friday 8 March 2013

Another sick bonus culture exposed?

It's amazing how fickle the newspapers and media can be. John Lewis has reported a good set of results this year and as a result is able to pay a 17% bonus to all staff.

And this is celebrated by the Guardian.

Of course, if you read the guardian perhaps you are more likely to be a client of one of the John Lewis brands and this may have an impact on their reporting.

In fact it must do because in the normal order of the leftie-world view, bonus's are of course evil and always unearned. The money should really have been used to reduce prices and stop the sheer rip off to the consumer that is a can of baked beans from Waitrose, a can that is overly expensive to a single mum struggling on benefits and a brand which also leads to much envy and promotes the hideous consumerism that is rampant within our society to the detriment of all.

At least now the growth in the John Lewis business is fuelled massively by its growing online presence we can be assured that there will be less need for those expensive high street shops with their business rates and employees.

Even better the final salary pension scheme is to be reviewed too as that is becoming too costly. So staff have a bright future to look forward too.

Of course regular readers will hopefully be amused to see me writing the above, but it just goes to demonstrate how partisan the media is today.

Of course, partnerships are a good business format, with some good benefits. Indeed, years ago now the City investment banks, now so hated, were all partnerships - I wonder if this becomes true again one day whether the Guardian will be celebrating the success of a potential Good Bank Capital LLP?

10 comments:

Blue Eyes said...

My personal view is that encouraging employees to own shares in the company could be a good model for many businesses. I saw an article during that illusory period of Darlingrecovery suggesting that Nasty Employers were keeping their staff down and rewarding themselves with their new profits. If staff members *think* their boss is doing this it might be quite a drag on productivity.

But as you say, it's absurd to say that Bankers Bonuses are against humanity but John Lewis Bonuses are saintly.

Of course some banks are moving [further] towards the employee-shareholder model, if only to get around the increased regulations.

Final point: I would bloody love a 9 week salary bonus.

Jan said...

It's the amounts we all mind about. A few thousand or even a few hundred is indeed a nice bonus for most people even if a good proportion goes straight to the taxman before it even hits the bank account (sharing the proceeds of growth?? Where have I heard that before?)

But a few hundred thousand or a few million just isn't fair is it? Especially for the banks where in reality they don't have the money to give as bonuses if they were to pay back what they owes us as taxpayers.

roym said...

there are good and bad bonuses clearly!

however, i would say that JL has made do with implicit treasury support for the past 5 years (5!). Also can JL borrow at central bank rates to fund growth? Whats happened to the Funding for lending money that has been drawn down but not lent? savers arent seeing any benefits thats for sure. are businesses? (i know they are taking less risk - but why the drawdown?)
lastly is bank shareholder value keeping apace with renumeration?

together with the hopeless swines in parliament (wonder which industry many will head for?) bankers are mugging us. what are we supposed to say?

Bill Quango MP said...

It is a good model John Lewis, but its incredibly slow. Slow and steady is their unofficial motto.
When the High Street was forging ahead in the double digit monthly ever increasing growth days they were being left behind.

They were slow to adopt designer labels. Slow to get on the telecoms. never really understood computers, back in the days when it was mandatory to go to the high street to get one and specialist computer stores were everywhere.

Waitrose was a poor player at the start of the crash.M Much of its +S trumped them every year.Recent success has been its online offer, and , as we predicted way, way back, the increase in their value and branded, rather than own label, offers.

So Mrs Q can show me the £1.80 for a box of tissues is actually .03p cheaper than at Asda!
{cunningly ignoring all the more expensive items. }

Budgie said...

Never mind the nomenklatura prices, is it socially responsible for Waitrose to sell processed meat?

James Higham said...

Of course, if you read the guardian perhaps you are more likely to be a client of one of the John Lewis brands and this may have an impact on their reporting.

:)

Electro-Kevin said...


As Jan says.

Why not bank bonuses paid in shares ? With a stipulation that they cannot be sold for three years.

Bill Quango MP said...

They are EK. And often for longer than 3 years.

SumoKing said...

You only have to look at the various imploding law firms (reported nowhere) and the ensuing battle to the death between partners (probably Halliwells is the best for this but well done Dewys) to see that banks are never going back to partnerships.

Agence communication said...

all what i have to say about those ideas is just to make this topic shared with us "" At least now the growth in the John Lewis business is fuelled massively by its growing online presence we can be assured that there will be less need for those expensive high street shops with their business rates and employees.

Even better the final salary pension scheme is to be reviewed too as that is becoming too costly. So staff have a bright future to look forward too.
""