Many banks on Wall Street are eager to retain and attract talent. Banks are reigniting the practice of offering iron-clad, guaranteed, multimillion-dollar payouts, reports The New York Times. The Obama administration’s compensation czar, Kenneth Feinberg, is preparing to review how compensation should be structured at seven companies that received two or more federal bailouts. The companies need to submit 2009 compensation plans for their top 25 earners by Thursday and Feinberg has 60 days to rule on them. He has the authority to single out any of those employees and adjust their pay packages. The following phase includes his review of the next 75 highest earners in each company. For those, he can set up pay formulas to be applied broadly. Feinberg has already met privately with executives at the companies and urged them to voluntarily rework any guarantees for high earners before the given deadline. He will face a difficult set of choices as Feinberg seeks to restructure pay practices, appeasing public outrage, while not hindering the profitability of these financial institutions in the process.
Guaranteed Wall Street Bonuses Under Fire
Kenneth Feinberg faces increased difficulties as companies seek to reinstate guaranteed bonuses to lure and retain talent on Wall Street.
August 10, 2009