Workers scrape by on $24,000 bonuses; shop for bargains, hold off on Ferraris.

Discussion in 'Politics, Religion, Social Issues' started by Unspeaked, Feb 19, 2009.

  1. Unspeaked macrumors 68020

    Unspeaked

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    #1
    Losing your home or dropping out of college is one thing.

    Now that I've read about these poor souls having their bonuses slashes from $50,000 to $25,000, I finally see the severity of the recession.

    How do they scrape by day-to-day?

    LINK


     
  2. DoFoT9 macrumors P6

    DoFoT9

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    #2
    well at least he gets a bonus, what a selfish git.

    i live off around $6k a year (AUS). tell him to try live off that, he would die.

    i jsut cant show remorse for these people..
     
  3. yojitani macrumors 68000

    yojitani

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  4. Unspeaked thread starter macrumors 68020

    Unspeaked

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    #4
    As was I.

    I really had to read it twice, paying attention to every detail the second time, before it finally sank in that I was reading The New York Times and not The Onion.
     
  5. notjustjay macrumors 603

    notjustjay

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    #5
    That's flabbergastingly ridiculous. Where can I get a job with $87,000 base pay and a $143,000 performance bonus?!

    At my company, the incentive plan is based on accomplishing objectives. At the beginning of the year, goals are set: $x cash flow, win this project bid, get these milestones on those projects. If the company meets ALL those objectives, then you get your full incentive pay -- 5-10% of base salary depending on your position and seniority. If the company meets only SOME of of those objectives, then you only get a proportion of the possible 5-10%.

    Based on this rule, we did get bonuses last year -- not the full amount possible, but I sure wasn't going to complain. Who knows what'll happen this year though.
     
  6. Eraserhead macrumors G4

    Eraserhead

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    #6
    FWIW If you earn more than US$4000 a year after PPP you are counted as middle class.
     
  7. DoFoT9 macrumors P6

    DoFoT9

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    #7
    oh righto, i have no idea what it is in australia.. but 6k AUS is under 4k US, or pretty darn close to it!!
     
  8. Rodimus Prime macrumors G4

    Rodimus Prime

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    #8
    I hate to be an ass about this but if you read the article it is very true in many way.
    The lost of bonuses really hurts people.
    Generally speaking at a certain point they do become part of your salary. You learn to count on them. A lot of time they are used for down payments on things that are needed/wanted. Term Christmas bonus make you think of anything. People used that to cover the cost of Christmas and it determined how good it was going to be so to speak.

    I can tell on these boards a lot of people here can not fathom living in a family with a 6 figure income and thinks those people are great. Truth be told 6 figure is a more expensive life style but does not mean they are any better off and if they lose their jobs they do not adjust to all of a sudden the lost of it. They have fixed bills like house payments, rent and so on that are beyond what many of us can afford.

    I grew up with parents who made over 6 figures. It is not hard when both your parents have a 4 year college degree.


    The bonus are like a huge stimulus check. I am getting a estimated 3k one in the next 2 months. It is going to be used to refill my savings from me having to dip into it for some car repairs and huge maintenance bill and then give me a little spending money to buy myself a new toy I been wanting.

    The lost of bonuses hurts the economy quite a bit. The richer people drive this economy a lot more than the poor and the bonuses are normally largely spent on extra "fun stuff"
     
  9. Golfer00ksu macrumors regular

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    #9
    This is not new news.. These bonuses have been going on forever. Just now that we are in this recession it becomes pertinent. It is good we speak out about this but to truly make a point we should have brought this up when the economy was booming.. People were also struggling then, you know.
     
  10. Unspeaked thread starter macrumors 68020

    Unspeaked

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    #10
    If someone making $135,000 has so much of their paycheck going to fixed bills that "only" getting a $25,000 bonus rather than a $50,000 causes a significant burden, they deserve whatever trouble they get themselves into.
     
  11. DoFoT9 macrumors P6

    DoFoT9

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    #11
    i agree with you, while i think bonuses are a good idea the fact that they are a such large amounts is rediculous. they get so used to receiving them that once it is taken away they have a cry... hate to be a mere mortal!
     
  12. fr33 loader macrumors regular

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    #12
    Let me emphasize that for you. :p Pity...
     
  13. Rodimus Prime macrumors G4

    Rodimus Prime

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    #13
    and it goes back to one of my other statements.

    Many people here do not nor can understand what it is like to have a 6 figure income.

    Remember cost of living goes up as pay increase. If you get a near a 50k bonus every year. Then you get used to it and it started being consider part of your salary.

    Now butting 25k our of a 185k normal yearly income works out to be a 13% reduction in pay.

    How you adjust if you got slapped with an unexpected 13% reduction in pay. A lot of people that will hammer. Most people do not even save 10% of there income much less deal with a 13% loss.
     
  14. fr33 loader macrumors regular

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    #14
     
  15. DoFoT9 macrumors P6

    DoFoT9

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    #15
     
  16. Unspeaked thread starter macrumors 68020

    Unspeaked

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    #16
    I think most of us understand it, we just think it's ridiculous.

    I could lose my job tomorrow and be fine for a year, because I do these crazy things called saving and planning.

    If these six-figure income people can't do something as simple as that, they're idiots.

    If these same people continually up their lifestyles proportionately to their pay checks year after year, they're even bigger idiots.

    At some point, you have to say to yourself, "I am happy with the large house I have. I am happy with the luxury vehicle I drive. I am happy with the types of vacations I take. I will try to put future money aside instead of upgrading the aforementioned luxuries year after year after year."

    I understand it. It just clashes with common sense.
     
  17. sushi Moderator emeritus

    sushi

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    #17
    Well said.

    I guess the old adage that your spending habits expand as you income increases is true in this person's case.
     
  18. SactoGuy18 macrumors 68020

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  19. Rodimus Prime macrumors G4

    Rodimus Prime

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    #19

    So you are telling me having your pay cut by 10-15% would have no effect on you nor you life.

    I know if my pay was cut by 10% that my savings rate would drop like a rock.


    Even if they had a savings built up the lost of the expect bonus (effectually cutting their yearly pay) is painful.

    Now a lot of people have savings but the lost of the bonus pretty much kills a lot of the extra spending. My parents where working on redoing part of there house and want to take a very nice vacation both planned around a bonus check. No bonus means they put that stuff on hold very quickly because they where not going to dip into their savings to pay for those things.


    The bold section is exactly my point on people here NOT understanding it. They see people with a lot of money and are jelous. They can not put it in simpler terms. Think in percentages and see how having a 10-15% pay cut would directly effect you. what would you do to adjust to a 10-15% pay cut.
     
  20. MacBoobsPro macrumors 603

    MacBoobsPro

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    #20
    You live by what you earn. That is to say if you earn £100k your lifestyle will reflect that, if its cut by £20k you are going to feel it even though other people can live on much less that £20k a year.

    That being said for people to be moaning about it when they are earning those amounts of money is despicable. They should be content to be in such a good position to begin with.

    As for the bonuses for the bankers all the bonus money from all the banks should be divided up and an equal share given out to each of the banks customers as a way to apologise for the **** they have put everybody in.

    If I lost my company £500 I would get reprimanded and possibly fined/fired. Never mind a collective $27 billion.
     
  21. iAlan macrumors 65816

    iAlan

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    #21
    I am bonused (not a real word?) quarterly, and it is all performance based. I hit my targets consistently and I know what i can achieve for doing so, thus have a good idea what my bonus will be. And I kind of budget certain purchases around my bonus. I don't get anywhere near the level of bonus mentioned in the article, but if you are to receive a clearly defined bonus based on your achievement you have no reason to complain if you don't reach the achieved goal and thus don't receive the bonus. If you receive a bonus based on something else and don't pay attention to what is going on you only have yourself to blame - if you are bonused at such a high amount you must be senior within your organization and thus privy to what is going on. Sure, you may not be getting access to the 'C-suite' but I would hope if your bonus is dependent on your company performance you would be paying attention.

    I know I am simplifying here, but I am sure you get my point.

    I know for some in the company I work for, the attitude has become 'I got XXX bonus last year i want the same this year'. Well, if it is in your contract and you perform, great, if not, you can't expect it. I know I will have a struggle this quarter and may not hit my targets 100%, so I know I will have to adjust what I do with my bonus when I receive it next quarter - plan to save it all for a new Mac purchase!
     
  22. GSMiller macrumors 68000

    GSMiller

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    #22
    Wait...They're still getting bonuses that big?

    Oh those poor souls.

    And I doubt the big dogs on Wall Street are suffering. Sure, they can't buy a new private jet every five years now, but that's not exactly suffering.
     
  23. MacBoobsPro macrumors 603

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    #23
    I agree. If you 'earn' the bonus great but you shouldn't be given a bonus a for poor performance.

    If I was in a bonus pay structure I would treat my bonus as exactly that... a bonus. I would never plan on spending something I don't actually have. Then if I under perform I have no reason to piss and moan that I didn't get 'my' bonus.
     
  24. bigjnyc macrumors 601

    bigjnyc

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    #24
    I'm an investment banker in NYC, my bonus this year got cut by about 75% from what it was last year, I'm a junior banker and by no means making huge bucks yet... but I usually just take my bonus and use it for savings, people who are dependent on their bonus to pay bills and other life necessities really should re-evaluate their budgeting scheme.
     
  25. yg17 macrumors G5

    yg17

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    #25
    Bullcrap. If I had a 6 figure income and lost my bonus, I'd readjust my lifestyle. Which, for these people would probably mean selling their huge mansion and buying a smaller mansion, trading their Ferrari in for a BMW, instead of eating a steak and lobster dinner, choosing either steak or lobster, and only drinking fine wine 5 days of the week instead of all 7. Boo-f**king-hoo. I have no sympathy for them whatsoever.

    Cost of living is cost of living, no matter how much your salary is. As long as you're making enough to cover the cost of living, you're going to be able to live a comfortable lifestyle. I'd like to see these people make what the average American making less than COL makes and trying to live off that for a month, just so they can see what it's like.

    Oh, and one more thing. If their budgeting skills are so bad that they're so far into debt, that despite a 6 figure income, they rely on their bonus to pay bills, what the hell are they doing running a bank?
     

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