The Trump administration intends to halt plans to regulate pay for bankers. Some argue that, as a result of Dodd Frank law, pressure from Obama and changes in the banking industry, compensation has been declining regardless. Shareholders want higher dividends and revenue has decreased since 2009 - in part due to the Volcker Rule - so naturally big banks want to reduce pay.
Last week, regulators including the Securities and Exchange Commission dropped efforts to craft those tougher provisions from their published agendas. Those proposals included longer deferment periods for bonuses and longer periods of time during which the payouts are subject to potential claw backs.- “Trump’s Move on Wall Street Pay Too Late for Bankers” WSJ, July 23
If comp has decreased naturally anyway, why not lock in these changes with definitive rules, so that pre-crisis incentives pay structures don’t recur? Would this make a big difference? Have you felt a decline in compensation/bonuses over the last 5-10 years? How are your bonuses structured?
