Wall Street took the latest government report on its pay practices in stride Friday, saying it would review U.S. pay czar Kenneth R. Feinberg's suggestions about compensation while privately expressing relief that the report wasn't tougher on them.
Mr. Feinberg's four-page public discussion of banks' pay practices concluded that 17 banks had handed out $1.6 billion in "ill-advised" executive compensation before he was assigned in 2009 to oversee banks that accepted government money during the financial crisis. Mr. Feinberg's report didn't disclose the level of ill-advised pay at the 17 firms, which included Goldman Sachs Group Inc., J.P. Morgan Chase & Co., Citigroup Inc., and Morgan Stanley.
Although Mr. Feinberg noted that payments sometimes exceeded $10 million per-person, he said some forms of payment such as cash bonuses and retention awards have been limited by subsequent rules. He declined to request that the firms return any payouts, saying he didn't find them against the public interest and expressing reluctance to trigger private lawsuits and additional congressional investigation.
Saturday, July 24, 2010
Pay Czar faults 17 companies but won't fight to get back bonuses.
He realizes that he tries that the amount of lawsuits that will come about and the financial disadvantage for companies in the future in getting top talent. If companies or shareholders have a beef with pay, step up and fix it yourself.