Sign In | Create an Account | Welcome, . My Account | Logout | Subscribe | Submit News | Newspaper contacts | All Access E-Edition | Home RSS

A "risky" loophole for executive bonuses?

August 24, 2009 - Mike Maneval

The Treasury Department is reviewing executive bonus proposals for seven companies that took billions in federal bailout money, but anyone who thinks the insulting excess seen last March will completely be rolled back should dampen their optimism: A report by Lisa Lerer and Victoria McGrane for suggests Wall Street will resist and, in Lerer and McGrane's words, "guaranteed multimillion dollar payments, untethered to company performance, are making a resurgence on Wall Street."

Wall Street executives, according to, continue to argue that cutting the exorbitant salaries will drive the most productive talent away in ways their employers' growing dependence on taxpayers apparently hasn't. White House Press Secretary Robert Gibbs also gave a troubling answer, suggesting its not the compensation packages which are aggravating but the perception of reckless practices. Likewise, U.S. House-authored regulation to curb Wall Street's excesses is also contigent on "inappropriate risks."

The question whose answer will unfold in the coming months is: Will past Wall Street pay practices continue as long as definitions of risk can be finessed enough? 


Article Comments

No comments posted for this article.

Post a Comment

You must first login before you can comment.

*Your email address:
Remember my email address.


I am looking for:
News, Blogs & Events Web