That wasn't a leading question or anything.

Wall Street and many financial and company bonuses are and have been out of control for years.

The more bonus these guys get the more money they spend to stimulate the rest of the economy for the rest of us. It doesn't help anyone if the were to get smaller bonuses. We need to jump start the cycle of spending in New York so that we can all begin making money again.

They have been using this "bonus" system for a long, long, time. Ever wonder why? You have part of it in the word "average". If the cafeteria workers and mail room clerks get 4 to 5 figs along with the secretary pool than everybody in middle management is getting 5 to 6. It's been keeping everyone happy, like throwing the doggie a bone. The top ten tier gets 7 figs, like in percentage and it little more than a means to justify excess as they also get LARGE salaries to go with the LARGE bonus. The others do not. A better system would be just to pay in line with job and responsibilities like the bulk of other business. In other words, it's a stinky system that is defended by those that reaping vast rewards. CNBC's Rick Santelli is an advocate, keep in mind where he is at. I think that the mail room clerk and the low end of payroll would prefer getting it on a weekly/monthly basis incorporated into their paycheck. It's too much like struggle and be loyal for the brass ring will come
They are not the only culprits for the whole banking system is based on low pay for at least 90% of their employees and big bucks for the remaining 10. Banks like to give titles like vice-president which are meaningless until you get to executive vice-president. In the former they usually have many and in the later - but one.

Defining "excessive" isn't that easy. I'm not advocating for the bonuses these firms pay, but one should keep in mind that looking at compensation practices at investments banks is not the same as looking at it with other industries (manufacturing, etc.). That's because the employees ARE the costs for the end product. They drive all revenue for these firms. For example, Phibro (which was just sold by Citi) made something like $400 million a year for the past five years. A lot has been made about their chief making a $100 million bonus, but if you take that figure plus another say $100 million for salaries and bonuses, then the company is operating at 50% margins. Those would be great figures for most companies.

Yes, there are some legitimate concerns about compensation practices (particularly with what transpired with the mortgage industry). And I agree that any bank currently receiving tax payer money should place a moratorium on large cash bonuses. But a lot of the criticism just is the same old liberal, progressive ideology.

It is an old boys club. They make the rules, and inforce the rules. First standard to acceptance; wealth and education. (where do all those Harvard & Yale, and big money families go when it is time to work? not Tyson Chicken) Second standard; level of influence, the more people you know that have an ear to policy be it governmental, or internal, the higher your value. (example the Kennedy family) Is always nice to twist an arm or be ahead of the regulators.
And the third standard to entry into the upper echelon's of banking, finance, politics, law, and business is good old fashion connections and restrictive inclusiveness. If you don't have the personal background, education, and associations the top cats expect, you don't get into the club.

And it is a club. They determine, their pay rate, how they will ethicly do business amongst each other, how to play the game of business, how to manipulate government, and how to make the business serve them...and no one else.

So yes I do think the bank bonuses are excess. The basic formula is faulty in that it is has is written to give out bonuses solely based on job title. Regardless of economic conditions, the executive class, have determined that their value never deminishes. As the rule makers they are exempt of there being a premium on any error or stock correction.

If capitalism worked like that for everyone, who would question its value.

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It is pretty simple. If you think they are excessive, pull your money from those banks and their stocks/bonds.