By now we have all heard of the large Christmas bonuses that companies usually give to their top employees in good years. 2008 has not been one of those good years. The stock market thinks that is 1929 and we are in a recession. Bonuses occur when companies have a large profit. Instead of paying large taxes on that profit, they take the profit and bonus it out to employees. Smart companies are holding back those bonuses this year or giving more reasonable bonuses.
Last year Google gave extensive bonuses to its employees including wads of cash and stock options. This year each employee got a $180 G1 Google Phone instead of a large amount of cash. This may seem silly but this is one of the reasons that Google is so successful. They have smart business men and it is a wonderful internet company.
Other companies such as Goldman Sachs did not seem to get the message. Goldman Sachs gave many of their employees million dollar bonuses in 2007. In 2008, the company reported their first ever loss since going public. A large majority of their clients lost money and they fired over 20% of their staff. To top it off they got a lot of money from the Government Bailout Package. So if there was no profit, government help, and layoffs, how did Goldman Sachs still find the money and the sense to give their employees massive bonuses. It is true that 6 of the top executived decided to skip their bonus this year, but hundreds of others still got massive bonuses.
I know this is not a post related to Internet Marketing or Internet Marketing Companies which is why people read this blog, but the internet exposes all of us to all kinds of businesses. It is interesting to see how some businesses react to the current economic condition of the country. I am sure there are people without jobs out there hurting to get by and make their mortgage payments that would want to know why Goldman Sachs reported a loss, got government bailout help, but still managed to give away massive bonuses.
I personall have friends in some of the other top Wallstreet investment banks and hedge funds and many of these people depend on their bonus but this year they did not receive one. In this recession companies need to look at all their expenses and adjust their budgets accordingly. Many companies are completely getting rid of their print marketing campaigns and switching completely to internet marketing campaigns while saving millions. If anyone has a comment on my rant on Goldman Sachs, please comment back.