[kchoudhu]

Do it to the traders then, not the programmers.

[edit] Saving 10K on a programmer, even multiplied over 1000 programmers isn't going to amount to a hill of beans in a crisis where the bank is at risk. My suspicion is that tech management at banks have adopted this system because they're failed middle managers and it helps them pretend that they're BSDs with the ability to swing pnl.

[pc86]

My suspicion is that any time someone's analysis of a situation requires them to say "$GROUP is just bad at their jobs," that analysis is biased at flawed at the deepest levels.

[kchoudhu]

Or it could be experience speaking: I worked at one of these banks for a decade, and was distinctly unimpressed by the caliber of technology management.

[pc86]

You can't generalize your experience at "one of these banks" to all management at all banks.

[kchoudhu]

Bizarrely, I'd rate the one I worked at as best in class as far as tech management goes.

To back this up, I can draw on the experiences of my friends and former colleagues across the Street, and a large number of hair-raising interviews at other banks that made me repeatedly wonder why I would trade in the devil I know for a dumpster fire.

At the end of the day though, "the best in class" is still not "good".

[DMac87]

The issue is that the same argument made for programmers can be made for back office & middle office as well, which when added up are much more than 1000 programmers. I agree that the bonus:salary ratio should increase drastically for trading/sales vs other roles, but for corporate culture/uniformity and practical business (need to quickly reduce costs) reasons it's done this way to some degree.

[kchoudhu]

I have extreme views about the existence of middle and back office personnel at banks as well. But that's another discussion for another day.