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Made in Germany | Bonus Payments - Should the banks think again?

556 views · Published 12 November 2008 · 3:58 · Indexed 6 November 2026

Channel: DW News · 2008 · Entertainment

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The system of bonus payments for bank staff has been widely blamed for the global financial crisis. It put added pressure on managers and traders to maximize their earnings by maximising profits.

Often, not enough consideration was given to minimising risk. Economists are now demanding banks change the way they operate. The topic is on the agenda at the upcoming world financial conference in Washington. But how could bonus systems be made more sustainable? MADE IN GERMANY asked major stakeholders in Europe's financial centres. Currently, managers are still receiving massive bonuses despite huge losses suffered by the banks. But car maker Porsche says bonus payments are not in themselves a bad thing. They give ordinary employees a chance to share in their company's success and function as a widely accepted work incentive. Dan Hirschfeld investigates.

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