Bonuses

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BONUSES….Robert Rubin has apparently told the Citigroup board that all of them should forego their bonuses this year. Ezra Klein asks, what bonuses?

Am I missing the point of bonuses? I always understood them to be tied to performance, either that of the individuals or that of the company. But the company almost went bankrupt this year and the executives demonstrated themselves almost cosmically hapless. If they were going to get bonuses, then what could the term possibly mean? Bonus for what? A working cardiovascular system?

Silly boy. You expect these titans of risk to take an actual risk with their own pay? That’s not how it works in corporate America. When the stock market is skyrocketing, everyone gets stock options. When it’s tanking, suddenly everyone gets religion and takes their comp in cash and perks. As for bonuses, the range of payout is almost never the theoretical 0-100%. In reality, it’s more like 70-95% for the range of reasonably conceivable outcomes. If your company goes completely bankrupt, that might go down to 60%. Welcome to Wall Street.

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In "News Is Just Like Waste Management," we unpack what the coronavirus crisis has meant for journalism, including Mother Jones’, and how we can rise to the challenge. If you're able to, this is a critical moment to support our nonprofit journalism with a donation: We've scoured our budget and made the cuts we can without impairing our mission, and we hope to raise $400,000 from our community of online readers to help keep our big reporting projects going because this extraordinary pandemic-plus-election year is no time to pull back.

THE BIG PICTURE

You expect the big picture, and it's our job at Mother Jones to give it to you. And right now, so many of the troubles we face are the making not of a virus, but of the quest for profit, political or economic (and not just from the man in the White House who could have offered leadership and comfort but instead gave us bleach).

In "News Is Just Like Waste Management," we unpack what the coronavirus crisis has meant for journalism, including Mother Jones’, and how we can rise to the challenge. If you're able to, this is a critical moment to support our nonprofit journalism with a donation: We've scoured our budget and made the cuts we can without impairing our mission, and we hope to raise $400,000 from our community of online readers to help keep our big reporting projects going because this extraordinary pandemic-plus-election year is no time to pull back.

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