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Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

Only the small violin that will play in a group of HSBC investment banks who have been dismissed without rewards on the day is expected to be informed of the size of their annual payment. Timing It looks cool. HSBC had a reputation as one of the most charitable employers in A. sector Unknown as infected human resource policies. But the new CEO George Ilidri is on a task to reduce costs. It integrates some units and dismantles the bank’s integration, consulting acquisitions and stock market operations outside Asia and the Middle East.

Most bankers think about changing wages as a permanent part of their wages – in reality, not a bonus at all. Although these incentives are linked to performance goals, repeated rewards are also an acceptable way to link the ambitious bankers to their employer or lure their defect in competition. The pleasant analysis of the eye indicates that unless he has a contractual commitment to pay bonuses, HSBC did not need to spend money in an attempt to operate on bankers who planned to shoot.

If Elhedary reminds his peers that “estimated” rewards are already appreciated, he may have done in favor of the sector as a whole. The bonuses must be a first step to save costs for banks exposed to pressure. Such decisions are easier in the opposite than wholesale repetition.

The ghost of the great financial crisis is still chasing the preparation of incentives by investment banks, for more than 15 years since its beginning. In 2008, the main problem was the mono -directional rewards that encouraged the risk between merchants, organized financial professionals and sales representatives. After the collapse of the non -dark products that they created and invested in, the terrible theoretical consequences of the economic system and taxpayers revived, instead of banks and their employees.

Now, rewards are returned as an important element in the bonus of bankers. The United Kingdom removed the reward “CAP”, which was hated by the heads of banks, after it practiced freedom of divergence from the post -crisis rules in the European Union after Britain left the European Union. In practical practice, the maximum has had an effect on paying fixed salaries and reducing bank flexibility to control public expenditures at bad times. UK -based banks can promise higher complications of fixed wages as incentives, a change that can in itself the attractiveness of London as a financial center.

Banks may still abandon post -crisis rules, such as long -length periods of stock -based bonuses, but these structures have the right to abuse capabilities and a new systemic crisis.

The banking reward season used to be an ugly self -promotion festival, promotion and promotion. that it More bureaucracy and less emotional these days. This is positive. Money is still speaking, however. The search may show that Non -financial benefits It often stimulates employees better, but the daily work of bankers revolves around the creation and circulation of pounds, dollars and euros. It is used to measure relative performance and bonuses financially.

In areas such as M & A and capital raising, it welcomes the release of some animal spirits, which are encouraged by rewards. If the correct deals and primary public offers are encouraged, they may contribute to the margin, to comprehensive competitiveness and growth. If that means enriching bankers who bring such work – and leave those who suffer from poor performance without rewards in low years – let it be so. After all, for every banker who was launched on the day of proof, there will be another person who was waiting until the payment reached his bank account before resigning to join a competitor who provides richer rewards. As the New Testament says, those who live next to the sword will die with the sword.