Tips and Bonuses
‘Tis almost the season for the end-of-year bonus. For some of us. Wall Street was famous for large bonuses, and certain firms bailed out with public money became infamous for using TARP money to continue paying out large bonuses. The banksters benefiting from our largesse claimed that bonuses were actually a late payment of money they had earned all year, but most folk can’t expect a bonus if the firm isn’t profitable. Many can’t even imagine more than a token Xmas bonus at all, and WalMart employees can only hope that shoppers will drop a few sugar plums in their baskets.
Forbes, CNN and Reuters note that financial sector bonuses are rising in general, though more for the less risky side of the business.
A few weeks ago, some Wall Street ex-big shot made news by blogging a tirade about having to tip the bathroom attendants. The NY Post reported:
Managers at Soho’s Balthazar said Monday they’re wiping bathroom valets off their payroll after business-news blogger Henry Blodget made snippy comments about the antiquated, “extortion-by-guilt” practice.
Blodget, a disgraced Wall Street analyst who now edits the Business Insider Web site, wrote last week that dealing with bathroom attendants is “never anything other than uncomfortable and degrading.”
Since then, I’ve noticed several articles challenging the practice of offering gratuities for personal service. Sushi Yasuda in NYC made news by eliminating tipping and raising prices to pay the staff a bit more. US News offered five facts, while Pacific Standard questioned the rationale behind tipping:
… it makes very little economic sense. You can lose hours reading theories about tipping, but here’s a nice summary: “Economists presume that individuals act in their economic self-interest. Thus, individuals engage in transactions with one another when it is in both their economic self-interests to do so. But it is hard to see how tipping is in the tipper’s self-interest.”
I don’t pay anyone’s salary, hence I don’t pay bonuses, but I do tip for personal service. We don’t dine out much, but when we do I tip servers at least 20%. I discarded the old 5/10/15 rule for breakfast, lunch and dinner because it seemed clear the servers work just as hard serving eggs and pancakes as beef and lobster. I give my barber $5, and he seems grateful. Hey, the man holds a straight razor near my throat – I want to keep him happy. I would tip my masseur if he wasn’t self-employed. Massage is about as personal as service can get and still be legal.
Just for grins, I looked up gratuity and bonus on Dictionary.com:
gra·tu·i·ty [gruh-too-i-tee, -tyoo-] noun, plural gra·tu·i·ties.
1. a gift of money, over and above payment due for service, as to a waiter or bellhop; tip.
2. something given without claim or demand.
bo·nus [boh-nuhs] noun, plural bo·nus·es.
1. something given or paid over and above what is due.
2. a sum of money granted or given to an employee, a returned soldier, etc., in addition to regular pay, usually in appreciation for work done, length of service, accumulated favors, etc.
They don’t sound too different, do they? Unless you work on Wall Street.