Skip to comments.Citigroup eyes new ways to pay employees
Posted on 05/05/2009 8:06:44 AM PDT by FromLori
Banks across Wall Street are struggling to reward top performers without violating an amendment to the 2009 stimulus package limiting executive pay. That amendment calls for the Treasury Secretary to review compensation of top employees at any major recipient of funds from the government's Troubled Asset Relief Program.
Bonuses are expected to face particular scrutiny after Wall Street firms paid $18.4 billion of bonuses in 2008, a year in which the U.S. financial sector required more than $1 trillion of government support.
Some banks, most notably Goldman Sachs Group Inc, (GS.N) hope to repay their TARP funds as soon as possible, in part to avoid having to comply with pay limits.
Citigroup, which has received $45 billion of TARP capital and is not believed to have much hope of paying the government back anytime soon, is having discussions with the government about measures that might be appropriate for retaining revenue producing employees.
(Excerpt) Read more at reuters.com ...
I wonder if the new ‘incentive’ would be to forgive a portion of your home’s mortgage? Hmmm, I see you have a 450K home mortgage - you did very well this year, so how about we just drop 50K from your mortgage this year? Or, how about we drop you to a fixed 0.01% loan for 30 yrs?
“That amendment calls for the Treasury Secretary to review compensation of top employees at any major recipient of funds from the government’s Troubled Asset Relief Program.”
Was there also a line in the amendment that called for oversight of TARP recipients’ wastage of paper clips by the Clip Czar, who heads up the Federal Department of Paper and Clips (FDPC)?
Seriously, the idea that unless Tim Geithner okays your private contracts they can’t possibly be economical, is absurd. Kafka-esque, I’d say. What is it that makes the federal government think it has a better plan than the companies and their employees themselves? Surely, it has been proved that the companies made mistakes. But the U.S. government has a much longer history of mismanagement. Trust me.
THAT would be the free market in action!!! (Free for how long?) Idiot socialists don’t understand economics.
STOP GIVING THESE FOOLS MONEY! CITI ET AL SHOULD DIE, THEY SHOULD BE DEAD! WHY ARE WE BAILING OUT FAILURES?!?
Let the screw ups fail, this will creat opportunities for new players and a stronger fiscal system will emerge, propping up the losers is rediculous nad guarantees this mess will drag on and on.
Let me re-state that....Idiot socialists don’t LIKE free market economics.
How about paying them in sea shells or other natural 'trinkets'?
The model of primitive communism applies to early human societies because hunter-gatherer societies had no stratification order and did not create surplus. Furthermore primitive societies may have contained all of the features presently associated with the goals of "communism".
In a primitive communist society, all able bodied persons would have engaged in obtaining food, and everyone would share in what was produced by hunting and gathering. There would be almost no private property, other than articles of clothing and similar personal items, because primitive society produced no surplus; what was produced was quickly consumed. The few things that existed for any length of time (tools, housing) were held communally. There would have been no state.
Domestication of animals and plants following the Neolithic Revolution through herding and agriculture was seen as the turning point from primitive communism to class society as it was followed by private ownership and slavery, with the inequality that it entailed. In addition, parts of the population specialized in different activities, such as manufacturing, culture, philosophy, and science. This stratification is said to lead to the development of social classes.
Those groups that advocate a return to or are inspired by hunter-gatherer society are associated with the movement of anarcho-primitivism. However, Marxists believe that this would be an impossible task.
"Give these out to the boys in lieu of pay"
I didn’t get a hur-ruff out of you.
Why do I always get a warped one?
How about being able to continue being employed as a reward?
“How about being able to continue being employed as a reward?”
LOL...that is pretty much the boat the rest of us are in!
Even in a failing organization, there are going to be those doing a great job and do deserve rewards, but I think everyone can understand that when the ship is floundering, rewards have to wait. If banking compensation is like the restaurant business where bonuses/tips are depending upon because base pay is not adequate, that should be fixed.
I’d tell Citi that they could pay me in .223 and .308 ammo. Just have a palletload of each drop-shipped to the house...
There is no longer a consequence for failing... Certainly not the lesson most “capitalists” learned growing up!
Simple - pay bonuses in the form of restricted “Stock Appreciation Rights.” 20% would be exercisable in each following year, and 20% would expire (if not exercised) in each of the following 5 years. All un-exercised SARs would be cancelled on resignation or termination for cause, and exercise MIGHT be advanced for compassionate causes - medical, education, home purchase, etc.
Of course, bonuses would be cumulative - each year would stand alone, with no affect on any other, so in any year after the 4th the employee might have exercisable (or even expiring) SARs from several recent years.
Many times,good behavior goes un-noticed & un-rewarded.
Time to quit pampering these brats.
All this is doing is prolonging and exacerbating the problem!!!!!
FED should have let BEARS fail to begin with, bailing them out meant that all the other dominoes just decided they wouldn’t be allowed to fail either so did NOTHING to solve their issues.
Why are propping up the failed and corrupt????
LET THEM ALL FAIL!!!!!!!!!!! The best long term thing that could happen to the US Financial industry is that all these idiots that put themselves in bad places FAIL!!!! And those that were responsible are left standing... Flushing the crap is the only way that we won’t continue a bad system. new players can pick up the pieces and create a more sound system.. instead the old corrupt and failed players just drag on and continue the mess... absolute obsurd!
Every dollar spent on “bailout” of hedge fund and national banks is a dollar thrown away, literally burned.. The Federal Reserve Bank should be burned to the ground. The “titans” of wall street heads should be on pikes. The elected officials who took the bribes to give these idiots everything they ever asked for should be disemboweled and their bodies left rotting for the vultures.
The tree of liberty is long past its need for the blood of patriots and tyrants. We are long past the point where this nations government will be the government of the people, without bloodshed.