The concerns and the perception have changes and numerous controversial ideas have changed the bankers’ bonuses ideologies significantly. Therefore, the research aims at identifying and analyzing the effects of bankers’ bonuses to the banking investment especially in relation to the performance of the banks.
The main aim of the bonus banking is to balance long-term and short-term value creation and satisfying accountability of the stakeholders with the intent of attracting, retaining, and motivation talent. However, what is the underlying reality of this motivational system The research shall answer this concern by seeking the .response to the following question:
In the journal, Banker’s pay structure and Risk, John Thanassoulis addresses the contrasting problems facing the banks and bankers. According to Thanassoulis, these contrasting banking problems are embedded in the competitive labor market where the banks are seeking best talents. Additionally, Thanassoulis notes that banks often use various motivation efforts that vary with the remuneration. However, the introduction of the remunerations motivations makes banks risk shifting problems by creating incentives that will only inflate the early earnings of the managers. In most cases, the management of some bonuses is of deferred optimally. Thanassoulis further notes that