The next chapter in the fall of bonus-based compensation
Just read on Bloomberg:
House Panel Approves Bill Letting Regulators Ban Incentive Pay
http://www.bloomberg.com/apps/news?pid=20601087&s…
TLDR version:
The bill would allow agencies such as the SEC to prohibit compensation that encourages financial companies to take “inappropriate risks.”
begin outrage:
“The government should not be in a position of setting executive compensation,” said U.S. Representative Spencer Bachus, an Alabama Republican. No Republicans back the bill
The senate is not going to pass this bill.
This would be wild though:
http://blogs.tnr.com/tnr/blogs/environmentandenergy/archive/2009/07/28/…
Can The Government Unilaterally Go Green? Here's an important scoop from InsideEPA. The Obama administration is mulling an executive order that would require all federal agencies to start reducing their greenhouse-gas emissions 20 percent by 2020—without waiting for congressional legislation. (That target would be slightly steeper than the 17 percent cut required by the House climate bill.) This would be a pretty big deal if it actually happened.
"Goldman Sachs Group Inc. set aside a record $11.4 billion, or 49 percent of revenue, for employees’ compensation in the first half of this year. Morgan Stanley allocated $5.91 billion and JPMorgan Chase & Co.’s investment banks put aside $6.01 billion.
The three firms paid back government funds they received through the Troubled Asset Relief Program, escaping pay restrictions imposed on recipients of U.S. aid. "
Does this mean even if the bill becomes a law, it wouldn't apply to GS, MS, and JP Morgan?
I wouldn't worry about it yet. MS set aside something like 72% of revenue for comp, right? Thought that was the % I read on Bloomberg.
I've been preparing the 2009 WSO Compensation Database (which I can hopefully get out by the end of this week) and all I can say is the drop off in bonus comp is pretty remarkable. Nor surprising, but across avgs it is still fairly pronounced.
Elite GMAT Tutors: //www.wallstreetoasis.com/page/one-on-one-gmat-prep Invite Monkeys Here: //www.wallstreetoasis.com/invite WSO Guides: //www.wallstreetoasis.com/wsoguides Follow WSO on Twitter: http://twitter.com/wallstreetoasis
Nostrum aut repellendus est a magni et. Doloremque corrupti autem molestiae ducimus optio saepe. Numquam assumenda rem odio rerum numquam doloremque repellendus.
Quia ratione odio magni voluptatibus tenetur tempora voluptate. Est et aut sed sed. Recusandae nobis autem doloribus numquam.
Error voluptates et aut voluptatem aut a. Rerum debitis id ut inventore. Ut animi non hic quis molestiae. Qui sunt tenetur debitis omnis qui nostrum ut non.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...