Bankers Still Paid Big Salaries, Bonuses
Everyone on Wall Street is fixated on Go here Number.
Bank executives are grappling with a question that exasperates, even infuriates, many recession-weary Americans: Just how big should their paydays be?
Despite calls for restraint from Washington and a chafed public, resurgent banks are preparing to pay out bonuses that rival those of the boom years.
The haul, in cash and stock, will run into many billions of dollars.
Industry executives acknowledge that the numbers being tossed around — six- seven- and even eight-figure sums for some chief executives and top producers — will probably stun the many Americans still hurting from the financial collapse and ensuing Great Recession.
Some bankers worry that the United States, like Britain, might create an extra tax on bank bonuses, and RepresentativeDemocrat of Ohio, is proposing legislation to do so.
Those worries aside, few banks are taking immediate steps to reduce bonuses substantially.
Instead, Wall Street is confronting a dilemma of riches: How to wrap its eye-popping paychecks in a mantle of moderation.
Because of the potential blowback, some major banks are adjusting their pay practices, paring here even eliminating some cash bonuses in favor of stock awards and reducing the portion of their revenue earmarked for pay.
Some bank executives contend that financial institutions are beginning to recognize that they must recalibrate pay for a post-bailout world.
Like many other bank chiefs, Mr.
Kelly favors rewarding employees with more long-term stock and less cash to tether their fortunes to the success of their companies.
While average bonuses are expected to hover around half a million dollars, they will not be evenly distributed.
Senior banking executives and top Wall Street producers expect to reap millions.
Last year, the big winners were bond and currency traders, as well as investment bankers specializing in health care.
They are off in a different world.
All have benefited from an array of federal programs and low interest rate policies that enabled the industry to roar back in profitability in 2009.
That figure includes salaries, benefits and bonuses, but at click to see more companies, bonuses make up more than half of compensation.
Goldman broke with its peers in Biggest bankers bonuses and announced that its top 30 executives would be paid only in stock.
He did not receive a bonus in 2008.
Responding to criticism agree, fireball frenzy bonus understood its pay practices, Goldman has already begun decreasing the percentage of revenue that it pays to employees.
The bank set aside 50 percent in the first quarter, but that figure fell to 48 percent and then to 43 percent in the next two quarters.
JPMorgan executives and board members have also been wrestling with how much pay is appropriate.
At Morgan Stanley, which has had weaker trading revenue than the other banks, managers are focusing on how to pay stars in line with the industry.
He retired as chief executive at the end of 2009.
At Citigroup, whose sprawling consumer banking business is still ailing, some managers were disappointed in recent weeks by the preliminary estimates of their bonus pools, according to people familiar with the matter.
And high compensation at banks is not limited to Wall Street.
On the opposite coast, in San Francisco, is paying its chief executive, John G.
Why are the stockholders being ignored while the heavy hitters keep being showered with bonus cash, stock and options?
Many of these managers should have been fired rather than rewarded.
Wells-Fargo cut their dividend 91%, but the love-gift giving goes on.
This is outrageous, and if they get away with more of it, it will only embolden these financially incestuous Boards of Directors to approve even larger amounts in the future.
Sorry, I guess I;m just a regular person- but what do these folks do all day to earn this type of money?
Do they kill terrorists read article something brave?
Is there any wonder that there is a grassroots surge to get people to pull what money they have left out of banks and into credit unions and community banks?
But back to my ignorance?
I have no problem with a business earning a fair profit.
No employee is worth more than 100 times minimum wage.
If the banks lend too aggressively, they slots bonus land irresponsible.
If they loan responsibly, they are not loaning enough.
If they have big losses, they are, again, irresponsible.
If they switch to stock compensation, everyone ignores that and still accuses them of overcompensating employees.
It is really easy to sit on the sidelines and mindlessly criticize.
This babble has gotten so moronic it defies description.
The BIGGEST BONUSES ever came after Tim G and the President loaned tax payer money for free to Goldman Sachs, made sure Goldman Sachs was paid 100% on their AIG policies, and now the Goldman Sachs bonus pool is bigger than what the Small Business Administration is helping to loan at close to extortion interest rates to help drive jobs in the small business sector.
Ron, Once the President and Tim G allow a level playing field and actually deliver something tangible for Small Business which drives over 50% of our employment vs bailing out banks for free and the ratio to small business lending is now less than 25% the bonus pool at Goldman.
I think those grasping fools should be rewarded by being forced to eat their own toxic sludge.
Until such time, no one will ever trust any of these pigs ever again … We need to remember that we can vote with our money.
Bank with credit unions and with banks that act reasonably in this economy, not with banks and institutions that are not giving loans and assistance, whether or not it was a TARP.
Until we get a reasonable dividend back, they do not deserve a bonus!!!!!
Invest through them at your own risk.
Why is it that neither the UK or the US Governments can bring about responsible, ethical financial reform?
Not all employees in the banks are equal when it comes to bonus.
Shame has never before traded at such a discount.
Hudson — you must be one of the damn bankers getting a bonus.
Shame on you and all the people who support these selfish pigs and what they did to the whole world.
I lost a lot of money in my 401K because of this BS and was laid off my job.
Now that I was forced into retirement — because biggest bankers bonuses job went to Mexico along with 800 other jobs — the funds are tight and so are the banks.
They received our money and now are paying the same amount of bonuses that they got in TARP money.
I ask like many other Americans — where the hell is my interest on the loan I gave them to make up my losses?
They have devistated this country and many hard working people are pating the price — NOT THEM!!
Worry about your Representatives that you elected Rep.
How STUPID can you be?
And of course, most Boards and company bylaws regarding Board elections are so lopsidedly rigged in favor of management that that will never happen.
Say, a 90% tax on bonuses, a la the UK?
A nice down payment on the next round of stimulus or deficit reduction or whatever.
Where would the whiners go?
Ensure the shareholders owners are taken care of first and have a binding say on compensation, then the bonuses can be paid out.
In every other business I have been in, the bonus pool for everybody is set individually but there is a corporate gate — if the corporation does not make money, no bonuses are paid.
Why is banking any different?
The good news is the banks will be paying back the TARP funds.
The bad news is they are building these revenues and bonus pools on the back link the same leverage and lack of transparency that risked bringing the system down last year.
Also, despite portions of the bonuses being deferred, and in restricted stock, the portion deferred is too small.
The compensation model is such that there is still an incentive to invest in strategies with longer-term biggest bankers bonuses, and shorter-term bookable profits.
In order for the banks to remain in these businesses, they must pay these bonuses.
I am a former derivative trader at Goldman Sachs and used to sit on their compensation committee.
We used McLagan surveys to get a sense what the competition is paying for each respective role.
This is as much an input into compensation as profits are.
Until that happens, another one of these debacles is certainly on the horizon.
Keep on going, there will be consequences to pay.
Some top investment bankers on Wall Street are getting bigger year-end bonus checks despite the trou
Securitisation bankers are expected to make a £268,000 bonus, 6pc up on last year. Currency traders, who last year made among the biggest bonuses, are expected to be among the smallest this year.
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