Posted on 12/21/2007 1:14:32 PM PST by ex-snook
NEW YORK - This might have been one of Wall Street's most dismal years in a decade, but that hasn't stopped bonus checks from rising an average of 14 percent.
Four of the biggest U.S. investment banks — Goldman Sachs Group Inc., Morgan Stanley, Lehman Brothers Holdings Inc. and Bear Stearns Cos. — will pay out about $49.6 billion in compensation this year. Of that, bonuses are traditionally estimated to represent 60 percent, or almost $30 billion.
But that might not sit well with investors who held on to investment bank stocks this year _ and watched them plunge by up to 45 percent. Investment houses have been slammed by the credit crisis, and top executives this past week said they've yet to see a bottom.
(Excerpt) Read more at msnbc.msn.com ...
That is a good reason for the CEO and upper management to have a reduced bonus.
I think the stock holders have a point in asking “what’s up with that?” .
Some traders have contracts or agreements that give them a % of their trading profit for the year. If they made millions, while the company lost millions, the trader is still entitled to their bonus.
If I don’t like a decision made by one of my managers I should be allowed to question it.
You bet. And if you don't want to give a top trader a portion of his profit, I'm sure another company will.
Great for Wall Street, not so great for the country. Because the average worker who got a 2 percent raise this year (and no bonus) sees this story, and then the idiot goes and votes for the communist dems to get revenge.
You get the point completely. The idea is to pursue policies that make 50+% of the electorate satisfied with the economy. Reliance on private industry or reliance on government - majority wins on election day.
Average wage was up over 4% this year. Why do you think most people get no bonus?
True enough.
But in that vein, if stockholders disagree with decisions made by the MANAGER, then they have the right to fire that manager -- and the stockholders have chose not to do so in most cases involving Wall Street corporations.
Merrill Lynch being the exception with John Morris??, who was recently canned for betting too heavily on bonds? real-estate backed bonds?
Also, at what point is an "owner" of a company too trivial to "question" the manager.
If I own 50 shares of IBM, do I have the same right to confront as someone holding 2 million shares of IBM?
Again, the only sectors who are hurting are ONE segment of the financials, and the homebuilders.
All other Wall Street sectors are doing very well, thank you very much.
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