A pretty large assumption if you ask me. These aren't hard times. The economy is improving, the markets are up, if a company misses its targets then its more likely bad management decisions than business conditions. These guys seem to have made big bonuses for doing a bad job.
I was speaking theoretically, not with regard to this particular situation.
However, the banksters are probably entirely correct that they need to pay these moneys or their best people will be hired away by other banks. This is essentially an auction process, and you have to stay in line with the other bidders.
The more important issue, IMO, is that it appears that the (more or less) free market has decided that certain types of employment are bidden up to levels at which is difficult to discern any relationship between the wealth generated or benefit provided to society and the compensation.
Are financial services really that immensely valuable? Are the upper ranks of this industry really that important?
I kind of doubt it.