During the 2003 -- 06 boom years, three agencies, The Federal Deposit Insurance Corp., the Office of Thrift Supervision, and the Office of the Comptroller of the Currency gave out millions of dollars in bonuses to regulators of these agencies.

The bonuses were supposedly given out for "superior" performance. Records show that at least $19 million in bonuses was awarded.

Continue reading Government Gave Bank Regulators Millions in Bonuses During Financial Meltdown

Government Gave Bank Regulators Millions in Bonuses During Financial Meltdown originally appeared on BloggingStocks on Fri, 19 Mar 2010 16:20:00 EST. Please see our terms for use of feeds.

Can you imagine this! American International Group (AIG) is paying its employees $100 million in bonuses.

This is after AIG was bailed out to the tune of $182 billion by the U.S. government. The government owns 80% of the insurance giant. AIG employees have agreed to a $20 million cut. However, some employees are screaming that that is not enough. They claim that their contracts dated earlier than the bailout must be honored.

Continue reading AIG to Pay Out $100 Million in Bonuses

AIG to Pay Out $100 Million in Bonuses originally appeared on BloggingStocks on Wed, 03 Feb 2010 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Americans Still Support Pay-for-Performance

Americans Still Support Pay-for-Performance originally appeared on BloggingStocks on Thu, 07 Jan 2010 17:30:00 EST. Please see our terms for use of feeds.

Continue reading Deutsche's Ackermann says Germany offers banks a 'comparative advantage'

Deutsche's Ackermann says Germany offers banks a 'comparative advantage' originally appeared on BloggingStocks on Mon, 14 Dec 2009 17:40:00 EST. Please see our terms for use of feeds.

For more than a third of private equity employees, employee compensation either stayed the same or declined. A recent report by alternative investment research firm Preqin estimates that 38% of private equity employees saw base salary freezes in 2009, and 6% of firms participating in the survey indicated that they were cutting salaries this year. Of course, this means that 56% kicked base salaries up this year, though the average increase was a mere 2%.

For the employees of 22% of the firms participating in the Preqin survey, the brush with a pay cut was close as these companies considered a freeze. But 40% haven't cut or never considered it.

Continue reading Salaries frozen, down at private equity firms this year

Salaries frozen, down at private equity firms this year originally appeared on BloggingStocks on Wed, 02 Dec 2009 12:00:00 EST. Please see our terms for use of feeds.

In a column that would seem more appropriate for a left-wing college campus news zine than The Wall Street Journal, McGill University professor Henry Mintzberg offers a proposal for how to change compensation practices in America: get rid of bonuses.

Mintzberg offers some well-worn -- and completely valid -- criticisms of stock-based compensation: golden parachutes, retention bonuses, etc. He explains the problems that come with assessing performance and raises another question that isn't talked about nearly enough: just how much of a role do CEOs really play in determining a company's success or failure?

Continue reading Get rid of performance-based compensation?

Get rid of performance-based compensation? originally appeared on BloggingStocks on Mon, 30 Nov 2009 16:40:00 EST. Please see our terms for use of feeds.

Against the backdrop of heightened public criticism, The U.S. Federal Reserve is trying to encourage banks to take the first step in controlling excessive pay and bonuses. Regulators have established broad guidelines for pay incentives and bonuses. However, they are quite loose and do not nail down any specifics. Regulators are trying to coax compliance before the end of the year.

Britain has taken the lead and mandated that a percentage of bankers' bonuses should be deferred for a number of years.

Why is there such a public outcry to curb excessive bankers' pay and bonuses?

Continue reading Fed telling banks to voluntarily adopt pay guidelines is not a good idea

Fed telling banks to voluntarily adopt pay guidelines is not a good idea originally appeared on BloggingStocks on Tue, 03 Nov 2009 09:20:00 EST. Please see our terms for use of feeds.

We have a human disaster of enormous proportions. We have 15 million persons unemployed. Thousands are on the brink of losing their homes. As of this December, 1.7 million unemployed will exhaust their benefits. They may be homeless at this holiday time. Some 400,000 persons exhausted their benefits in the month of October.

Now, as reported in BusinessWeek, one lone economist, Katerina Alexandraki, is asking Wall Streeters to give their bonuses to the homeless and unemployed. She has set up a website, Bonus for Homes, and started a campaign to distribute the monies to low-income earners and the unemployed.

Continue reading Will the Scrooge bankers give their bonuses to the needy Bob Cratchits?

Will the Scrooge bankers give their bonuses to the needy Bob Cratchits? originally appeared on BloggingStocks on Sun, 01 Nov 2009 16:40:00 EST. Please see our terms for use of feeds.

Continue reading Bank profits come directly out of your pocket

Bank profits come directly out of your pocket originally appeared on BloggingStocks on Mon, 26 Oct 2009 15:40:00 EST. Please see our terms for use of feeds.

If you've worked as a broker you know the game. The house sets quotas. You must meet the quotas or its good-bye.

As a broker, your first and foremost obligation is to the client. You can make recommendations, but in the last analysis, the decision to buy or sell a security rests with the client. Brokers, however, are often under the gun by management to tout certain securities to their clients that may not be in their best interests.

Continue reading SEC warns brokers against big bonuses

SEC warns brokers against big bonuses originally appeared on BloggingStocks on Wed, 02 Sep 2009 13:00:00 EST. Please see our terms for use of feeds.

Reportedly, Goldman Sachs (NYSE: GS) staff will be receiving the largest bonus payouts in the company's 150-year history, thanks to a solid first half of 2009. This news has kicked off a bit of concern that large investment banks that survived the credit crunch would hamper any attempts at financial regulation reforms. The main reason that Goldman Sachs was able to perform well in the quarter was a general lack of competition and a surge in revenue thanks to the company's trading of foreign currency, bonds, and fixed-income products.

A week ago, the London staff of Goldman Sachs was told that they could expect larger bonuses -- as long as the company's predictions for its most profitable year ever come to fruition. Next month's second-quarter earnings report are expected to show a jump in profits. An example of how strong the quarter was, Warren Buffet spent $5 billion to purchase GS shares in January -- and the Oracle of Omaha has made $1 billion on this investment.

Continue reading Goldman Sachs employees to receive record bonuses

Goldman Sachs employees to receive record bonuses originally appeared on BloggingStocks on Mon, 22 Jun 2009 11:20:00 EST. Please see our terms for use of feeds.

When the history of this financial crisis is written, this story story will be a contender as a standout example of its kind. It is one of the slickest, under the table, sleight of hand deals ever.

Picture this. The financial markets are falling apart right and left. Lehman, Bear Stearns and Merrill are going down for the count. In the midst of this confusion Bank of America Corp (NYSE: BAC) is in the process of taking over Merrill Lynch. Merrill executives and employees are in a state of panic but at the last moment they regain their composure and have the audacity (word is too mild) to pay themselves $3.6 billion in bonuses just days before the BofA takeover.

Continue reading BofA under investigation by the SEC concerning Merrill Lynch bonuses totaling $3.6 billion

BofA under investigation by the SEC concerning Merrill Lynch bonuses totaling $3.6 billion originally appeared on BloggingStocks on Tue, 14 Apr 2009 17:20:00 EST. Please see our terms for use of feeds.

Continue reading Connecticut AG says AIG bonuses higher than reported

Connecticut AG says AIG bonuses higher than reported originally appeared on BloggingStocks on Mon, 23 Mar 2009 08:40:00 EST. Please see our terms for use of feeds.

Continue reading After announcing job cuts, Macy's announces bonus payments

After announcing job cuts, Macy's announces bonus payments originally appeared on BloggingStocks on Wed, 04 Feb 2009 14:45:00 EST. Please see our terms for use of feeds.

Ohio-based regional bank Huntington Bancshares (NASDAQ: HBAN) reported today a series of drastic measures meant to reduce costs by $100 million in 2009. Huntington will cut 500 jobs, or about 4% of its workforce; freeze salaries at 2008 levels; eliminate executive and incentive awards for 2008; and discontinue the company's 401(k) match contribution.

"It is important that our customers and shareholders know that we are well-positioned to deal with this challenging environment," said Chairman, President and Chief Executive Officer Stephen Steinour in a statement. "Our liquidity position is strong."

Continue reading Struggling Huntington Bancshares cuts jobs, bonuses, and 401(k) match

Struggling Huntington Bancshares cuts jobs, bonuses, and 401(k) match originally appeared on BloggingStocks on Tue, 03 Feb 2009 11:45:00 EST. Please see our terms for use of feeds.

Continue reading Ambac pays execs $3 million in undeserved bonuses

Ambac pays execs $3 million in undeserved bonuses originally appeared on BloggingStocks on Tue, 03 Feb 2009 08:48:00 EST. Please see our terms for use of feeds.

Continue reading Despite public outcry, bank bonus reform may have to take a back seat

Despite public outcry, bank bonus reform may have to take a back seat originally appeared on BloggingStocks on Mon, 02 Feb 2009 18:15:00 EST. Please see our terms for use of feeds.

One of the questions that I spent this week discussing is this: What was Wall Street thinking? Whether it's using taxpayer money to pay itself $18.4 billion in bonuses or to buy a $50 million corporate jet after posting $35 billion in losses, people are wondering whether Wall Street gets it. The answer is yes. Wall Street gets that nobody stopped it from paying bonuses when it took our money, so it took what it could. Unless we limit how Wall Street spends taxpayer money, it will keep paying itself big bonuses.

Wall Street is a place where the people at the top are trained to grab as much as they can out of the hands of the other graspers. At least $200 billion worth of TARP money went to Wall Street with no strings attached. If you put that much money into the hands of a culture that believes firmly in taking what it can get -- it usually pays half of its revenues to employees -- you end up with Wall Street taking as much as it can from the taxpayers.

Continue reading Is there a new reality on Wall Street pay?

Is there a new reality on Wall Street pay? originally appeared on BloggingStocks on Sat, 31 Jan 2009 08:32:00 EST. Please see our terms for use of feeds.

"There will be time for them to make profits, and there will be time for them to get bonuses," he said. "Now is not that time."

He's completely right: It is indeed shameful that these banks are paying any bonuses at all while they beg for government money and send their shareholders to the poorhouse. But the fact is that the United States government had an opportunity to put stiffer limits on bonuses before it started handing out the TARP money and decided not to do that. So what do people expect? We know that America's banks are managed poorly by arrogant and entitled bureaucrats.

Continue reading Obama's empty rhetoric on Wall Street bonuses

Obama's empty rhetoric on Wall Street bonuses originally appeared on BloggingStocks on Fri, 30 Jan 2009 09:00:00 EST. Please see our terms for use of feeds.

Continue reading Thain's $1.2 million office redecorating may prompt Congress to act on executive compensation

Thain's $1.2 million office redecorating may prompt Congress to act on executive compensation originally appeared on BloggingStocks on Thu, 22 Jan 2009 18:20:00 EST. Please see our terms for use of feeds.