A study by the Washington-based Institute for Policy Studies found that executives from our top 10 financial firms earned about $90 million in the value of stock options in recent months.
This is how the game was played. Bankers took stock options on their companies when their stock prices were low during the financial meltdown. Now, with the price of bank stocks shooting up, the value of these options also skyrocketed, helping them to pocket a neat $90 million if they choose to exercise them.
Off and on, Congress has poked into excessive compensation for bankers. Strangely, however, nothing concrete has been done. Could it be that the bank lobbyists are busy at work, doing their bit to keep Congress at bay?
Sarah Anderson, lead author of the report, said of congressional attempts at regulation: "We see these little flurries of activities in Congress where it looked like it was going to happen. ... Then they would just peter out."
The report went on to say that 20 companies were paid 85 times more than regulators who direct the Securities and Exchange Commission and the Federal Deposit Corporation.
Should bankers' compensation be reined in?
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Reader Comments (Page 1 of 1)
9-02-2009 @ 3:25PM
Finnegan said...
HaHaHaHa! Did you dream for a momenta that Obama was going to sanitize this sector? Cap on executive salary, accountability, transparency?
BS he gave them money (bail out) so their stocks could increase in value. The Axxholes made millions and we are still trying tyo figure out to pay the morgage!
I see the French revoulution coming. Guillotine on the White House lawn?