Bonus plural in the financial press mostly bonuses, besides also bonuses (bonus; extra dividend)

Generally speaking, an allowance, bonus, special payment made as a credit by the contracting party, especially – a company, in this case a discount or advertising money, – an insurance company, in this case proof of regular visits to the dentist, or – the state, in this case a subsidy to companies that offer apprenticeships to young people with poor grades, known in the jargon as a “dolt premium”. – An extraordinary dividend (melon) paid out by a stock corporation. – Payment made in addition to the normal salary to the executives of a company in general and a bank in particular; originally a profit distribution, today often paid independently of profits. In 2008, for example, Union Bank of Switzerland (UBS: Switzerland’s largest global bank) suffered a loss of CHF 19.7 billion in the wake of the financial crisis that followed the subprime crisis, and had to be bailed out by the Swiss government, among others, with an initial CHF 6 billion. Nevertheless, its executives received CHF 2.2 billion in bonuses. In the U.S., bonuses in the financial industry are usually not paid out of profits, but out of sales; therefore, it is possible for institutions to pay (high) bonuses even if they have made losses. – In the summer of 2009, the Attorney General of the USA calculated that the new largest banks in the USA had to be bailed out by the state with a total of USD 175 billion in 2008. In that crisis year, however, just over $32 billion in bonuses were paid out to executives. This means that almost every fifth dollar of government aid ultimately went from the taxpayers’ wallets to the bankers’ accounts. It was therefore decreed in some countries, probably rightly, that compensation incentives in the financial sector no longer take into account past “successes” of individual persons or teams, but must also include future performance and therefore only be paid in retrospect. – Bonus systems generally focused only on short-term success. It was therefore perfectly rational for a banker to take the highest risks in order to achieve high returns and receive corresponding bonuses (“high speed money”). In the event of failure, the banker merely fell back on his basic salary. This is a prime example of how a limitation of liability leads to irresponsible business behavior (reckless conduct of business). – In the case of certificates, the profit that is contractually due to the purchaser. – See investment liability, incentive system, bank scolding, pay, bonus, bonus capping, bonus system, Citigroup bonus system, fixed fee, guaranteed commission, gratuity, handshake, golden, high potential, high-speed money, honorarium, hot spot, institution compensation regulation, hunting fee, low performer, management compensation, abusive, million grave, employee accountability, moral hazard, bonus, reimbursement, sleeping money, shitstorm, bonus, too big to save principle, underperformer, compensation, compensation system, loss absorption, personal, insurance compensation regulation.
Pre-audit, Executive Board compensation, lemon trading. – Cf. BaFin Annual Report 2009, p. 252 (the supervisory authority also distributes generous bonuses to its employees), BaFin Annual Report 2013, p. 106 (deficiencies in the audit of compensation systems).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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