The ethics of bonuses

Tuesday 21 September, 2021
by 2021 BFO Young Ambassador

You’re an investment operations analyst working in a large bank. You notice that one of the FX traders is placing very large bets. While these bets are technically inside the limits, you know the trader plans to leave the bank following this bonus round.

 At your bank, traders are paid bonuses based on the results of their trades.

 What would you do?

  •  What – if any – action would you take?
  • Would you speak up against this type of remuneration?

We challenge you to create a healthy discussion with your colleagues and post a comment below. You could even encourage them to consider taking The Banking and Finance Oath! If you would like to submit an ethical dilemma to feature in an upcoming weekly challenge please email: dilemma@thebfo.org.

Photo by Photo by Joshua Hoehne on Unsplash

Comments

There are 1 comments for The ethics of bonuses.

Re: The ethics of bonuses

Thursday 23 September, 2021
by Quinten
I think if the bonus system is attached to the individual alone you miss out on an opportunity to drive the team as a team. Perhaps this could be addressed by having a group bonus system. This would also encourage people to support each other?

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