Perhaps the assumption in your example would be that the banker to who got to manage the £30 mil fund was better in the first place, so deserved the larger return for less work. Maybe the £1 mil person will get a better fund next time? Pretty dodgy assumptions though :)
The focus on mostly bankers* getting a % of profit as opposed to % of base salary for meeting a target (which seems to be more common in other businesses) must have something to do with the fact that they are only making money and nothing else in their work. But no, I can't really come up with a reason why this is so. But I suspect once a system is in place it takes a brave workplace to change the practice.
*in the book I'm reading, Sarah Caudwell's Thus was Adonis murdered, the office manager at the law firm gets 10% of the money earned by the lawyers. Very strange, as you would think this is a clear incentive for him to book appointments for every minute of the day, make the lawyers feel guilty for knocking off half an hour early and disssuade cheaper cases from being taken up. But this really is an exception I think!
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Date: 2010-07-04 09:54 am (UTC)The focus on mostly bankers* getting a % of profit as opposed to % of base salary for meeting a target (which seems to be more common in other businesses) must have something to do with the fact that they are only making money and nothing else in their work. But no, I can't really come up with a reason why this is so. But I suspect once a system is in place it takes a brave workplace to change the practice.
*in the book I'm reading, Sarah Caudwell's Thus was Adonis murdered, the office manager at the law firm gets 10% of the money earned by the lawyers. Very strange, as you would think this is a clear incentive for him to book appointments for every minute of the day, make the lawyers feel guilty for knocking off half an hour early and disssuade cheaper cases from being taken up. But this really is an exception I think!