Stimulus Plan Places New Limits on Wall St. Bonuses

[ShockediSay]

Source: NYTimes

A provision buried deep inside the $787 billion economic stimulus bill would impose restrictions on executive bonuses at financial institutions that are much tougher than those proposed 10 days ago by the Treasury Department....

Top economic advisers to President Obama adamantly opposed the pay restrictions, according to Congressional officials, warning lawmakers behind closed doors that they went too far and would cause a brain drain in the financial industry during an acute crisis....

But some experts on executive compensation warned that the restrictions could unleash unintended consequences, like encouraging banks to increase salaries to make up for diminished incentive pay. Even then, they warned, banks were likely to lose top talent.

Read more: http://www.nytimes.com/2009/02/14/business/economy/14pay.html

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If restrictions on pay for these losers causes a "brain drain,"
another "brain drain" is my a**hole.

" to lose top talent?" Where are these Raper Barrons
going to go? I'd sue anyone that hired these overpaid losers
to manage my money.

And "top talent" to do what? Game the system bankrupt?

[UpInArms]

1. those "brains" done "drained" the treasury

and they can go stand in a soup line in their fancy suits

[Sarah Ibarruri]

2. LOL! Thank you! You cheered me up by saying this....

"
If restrictions on pay for these losers causes a "brain drain,"
another "brain drain" is my a**hole.

" to lose top talent?" Where are these Raper Barrons
going to go? I'd sue anyone that hired these overpaid losers
to manage my money.

And "top talent" to do what? Game the system bankrupt? "

It's true.

[ProgressiveProfessor]

3. So they restructure the compensation plan from bonuses to salary

No one should be stupid enough to think that there will really be pay cuts...

[keepCAblue]

4. Well, there's Cenk's answer to who removed the pay cap of executives receiving bailout money...

"Top economic advisers to President Obama adamantly opposed the pay restrictions, according to Congressional officials, warning lawmakers behind closed doors that they went too far and would cause a brain drain in the financial industry during an acute crisis...."

[lostnfound]

13. Isn't it likely to be Geithner, for one?

I wish they would name names for these specific advisors, so that they too can be publicly castigated.

[diddlysquat]

5. The last line is interesting

“At some point, you begin to wonder: has the government given up on these companies anyway?” he said. “Why would the government or White House want to go along with that unless they have come to the conclusion they will have to nationalize these firms anyway?”

Is this what they have in the back of their mind?

[ohio2007]

6. the $500 k pay caps were removed from the stimulus plan twhich made this statement true

encouraging banks to increase salaries to make up for diminished incentive pay. Even then, they warned, banks were likely to lose top talent.

[Baby Snooks]

7. Wonder who managed to slip it into the bill?

Given the number of bonuses planned by many of these institutions for "retention purposes" it will be interesting to see who complies with the provisions and even more interesting to see if they are held accountable if they do not. More than likely they will claim the bonuses are being paid out of profits which of course then raises the question of why they are receving federal funds to keep them solvent.

Not that anyone will do anything about it when the question is raised, if it is raised, in Congress.

Of course there may be a loophole - sometimes the loopholes are found several hundred pages later in the bill. The fine print as they say.

[Rincewind]

8. Where are they going to go?

Get real, the whole finance/banking industry is in shambles, there aren't a bunch of banks crying out for top executives. Let the whiny little bastards quit their jobs and go to work as greeters at Walmart. They whole country will be better off without them.

[ShockediSay]

11. Couldn't agree more nt

[FKA MNChimpH8R]

12. Bingo!

These parasitic weasels should be thrilled to death that they aren't given the Mussolini/Ceaucescu treatment they so richly deserve.

[BadgerKid]

9. Attempting to give a damn

[BlancheSplanchnik]

10. in light of the mass freak out we had here when the caps were pulled

this looks like great news!

damn frat boy in club members can have a big fucking kick in the ass!! suck on this, gentlemen.

[Carni]

14. Thank God!

It's about time!