Friday, May 20, 2011
Pay bankers their Customers' average total income.
Instead of paying bankers by how much they make for the bank, I think a better system would be that they get paid based on an actuarial table related to savings vs income. In other words, I'm guessing that an average salary per customer can be determined via some sort of accounting calculus. Principal bankers would get paid multiples of the average wage: say, no more then 20x the standard wage of the average customer. So, for example, the Bank of America would have an average wage per customer of say...40,000 bucks, so, most of the bankers would get that much, and the CEO might get 800,000 bucks a year. Basically, all salaries would be tied to customer average salaries, and even bonuses could not exceed 2x the base salary of the employee.