Have you noticed the efforts to diminish the compensation or banking honchos and Wall Street hotshots?
Or at least make it look that way.
Our friends at Goldman Sachs are in the forefront, which should give you lots of confidence that the effort is for real.
The bonuses are in restricted stock that has to be held at least five years, so if the stock value went down 20% the banker would receive only $8 million instead of the $10 expected—poor baby, a lousy $8 million dollars, that’s terrible! Of course, the stock goes up 20% they’ll pick up an extra two mil.
Goldman benefits because the shares don’t count as compensation until they vest, which means they don’t show as an expense and that will boost profits.
Another piece of sleight-of-hand is counting consultants and temporary workers as employees; this raises headcount and significantly lowers pay per employee making politicos and the media happy.
Does it make you happy?
Do they really think we are that stupid?
Image credit: Robert Couse-Baker on flickr