Austerity for us, double digit pay rises and champagne for them. - U2 Feedback

Go Back   U2 Feedback > Lypton Village > Free Your Mind
Click Here to Login
Reply
 
Thread Tools Search this Thread Display Modes
 
Old 06-24-2012, 09:07 PM   #1
ONE
love, blood, life
 
financeguy's Avatar
 
Join Date: Dec 2004
Location: Ireland
Posts: 10,122
Local Time: 08:21 PM
Austerity for us, double digit pay rises and champagne for them.

Quote:
Bank chiefs enjoy double-digit pay rises

By Daniel Schäfer in London


Top US and European bankers, including JPMorgan Chase’s Jamie Dimon and Citigroup’s Vikram Pandit, have enjoyed double-digit annual pay rises averaging almost 12 per cent, despite widespread falls in profits and share prices, Financial Times research shows.

The disclosure will stoke concern on both sides of the Atlantic over chief executive pay levels that has already led to several high-profile investor revolts, including at Citi and at Barclays. It comes as Europe’s leaders debate a cap on bank bonuses.

The analysis of total pay awarded to 15 bank chiefs by Equilar, a US pay research group, shows they received an average 11.9 per cent pay rise last year to $12.8m, the second increase in a row. However, the pace of growth has slowed.

Bankers such as Brian Moynihan at Bank of America, Citigroup’s Mr Pandit and JPMorgan’s Mr Dimon enjoyed the largest gains.

Mr Dimon, whose reputation as one of the best managers in banking has been hit by a $2bn trading loss in a supposedly safe division of JPMorgan, topped the list for the second year in succession with a $23.1m pay package that was 11 per cent higher.

The analysis by Equilar adds up base salaries, cash bonuses and certain other benefits. It also includes option and stock awards that were granted in 2011, some of which to reward performance in previous years.

It shows that fixed salaries continue to rise while variable cash payments are sinking as regulators clamp down on bonuses. But average stock and option awards increased by 22 per cent.

“Regulators try to prevent banks from taking the outsize risks that led to the financial crisis. But the problem is that shareholders still like outsize returns,” said Albert Laverge, head of the global investment banking practice at Egon Zehnder.

Mr Pandit’s pay soared to $14.9m after the $1 salary of the previous two years was ditched. He had pledged constraint until the bank would return to profitability, which it did in 2010.

His pay package, which ranks in the middle of the FT survey, sparked an investor revolt at Citigroup’s annual meeting in April that triggered a wider shareholder uprising against executives’ pay levels in Europe and the US.

In the UK, Bob Diamond at Barclays came second in the survey with a $20.1m pay package that was inflated by a contentious £5.75m tax bill covered by his employer. António Horta-Osório was awarded total pay of $15.7m in his first year at partly state-owned Lloyds Banking Group, thanks to a welcome package and despite giving up his cash bonus after a stress-related two months’ leave.

The European Union is debating a possible cap on bonuses that would maximise the variable payout at 100 per cent of fixed salary.

Tougher regulation has prompted many banks to increase fixed salaries, defer large parts of bonuses and subject them to clawbacks in the case of future losses.

The average pay rise came in a year when the FTSE world banks index fell by a quarter, more than the overall world index. Only three of the 15 banks in the survey – Wells Fargo, BBVA and JPMorgan Chase – have outperformed the world banks index while none has beaten the general index.
Bank chiefs enjoy double-digit pay rises - FT.com

I'm tired of this crap. When does the revolution start?
__________________

__________________
financeguy is offline   Reply With Quote
Old 06-24-2012, 09:18 PM   #2
The Male
 
LemonMelon's Avatar
 
Join Date: Aug 2004
Location: Hollywoo
Posts: 65,816
Local Time: 11:21 AM
I think you should start the revolution, financeguy.
__________________

__________________


Now.
LemonMelon is offline   Reply With Quote
Old 06-24-2012, 09:36 PM   #3
ONE
love, blood, life
 
financeguy's Avatar
 
Join Date: Dec 2004
Location: Ireland
Posts: 10,122
Local Time: 08:21 PM
I think you should, Lemon Melon.
__________________
financeguy is offline   Reply With Quote
Old 06-24-2012, 09:42 PM   #4
Rock n' Roll Doggie
Band-aid
 
maycocksean's Avatar
 
Join Date: Jan 2006
Location: The Most Important State in the Union
Posts: 4,882
Local Time: 02:21 PM
This does not bode well for the revolution. . .
__________________
maycocksean is offline   Reply With Quote
Old 06-24-2012, 09:44 PM   #5
ONE
love, blood, life
 
financeguy's Avatar
 
Join Date: Dec 2004
Location: Ireland
Posts: 10,122
Local Time: 08:21 PM
Quote:
Originally Posted by maycocksean View Post
This does not bode well for the revolution. . .
What doesn't?
__________________
financeguy is offline   Reply With Quote
Old 06-24-2012, 09:50 PM   #6
Rock n' Roll Doggie
Band-aid
 
maycocksean's Avatar
 
Join Date: Jan 2006
Location: The Most Important State in the Union
Posts: 4,882
Local Time: 02:21 PM
That you and LemonMelon can't agree on who should start the revolution.

I was trying to be humorous.
__________________
maycocksean is offline   Reply With Quote
Old 06-24-2012, 09:55 PM   #7
ONE
love, blood, life
 
financeguy's Avatar
 
Join Date: Dec 2004
Location: Ireland
Posts: 10,122
Local Time: 08:21 PM
Quote:
Originally Posted by maycocksean View Post

I was trying to be humorous.
Do you find this topic amusing?
__________________
financeguy is offline   Reply With Quote
Old 06-24-2012, 10:16 PM   #8
Rock n' Roll Doggie
Band-aid
 
maycocksean's Avatar
 
Join Date: Jan 2006
Location: The Most Important State in the Union
Posts: 4,882
Local Time: 02:21 PM
No sir.
__________________
maycocksean is offline   Reply With Quote
Old 06-24-2012, 10:23 PM   #9
ONE
love, blood, life
 
financeguy's Avatar
 
Join Date: Dec 2004
Location: Ireland
Posts: 10,122
Local Time: 08:21 PM
That's good. I don't either.
__________________
financeguy is offline   Reply With Quote
Old 06-24-2012, 10:53 PM   #10
Blue Crack Distributor
 
bono_212's Avatar
 
Join Date: Oct 2005
Location: Los Angeles
Posts: 81,105
Local Time: 11:21 AM
I'm amused.
__________________
bono_212 is offline   Reply With Quote
Old 06-25-2012, 02:21 PM   #11
Rock n' Roll Doggie
ALL ACCESS
 
purpleoscar's Avatar
 
Join Date: Jul 2004
Location: In right wing paranoia
Posts: 7,597
Local Time: 12:21 PM
Maybe a shareholder revolution?
__________________
purpleoscar is offline   Reply With Quote
Old 06-26-2012, 08:03 PM   #12
Acrobat
 
ladyfreckles's Avatar
 
Join Date: Apr 2012
Location: Seattle
Posts: 402
Local Time: 12:21 PM
I constantly hear about how Americans have an "entitlement" problem whenever there's talk of raising the minimum wage or stopping CEOs for cutting benefits and pay raises/bonuses. It annoys me to death. Many college graduates don't even make a living wage in America and they are making above minimum wage. Then you hear about this stuff... and it's just... ugh. It annoys me that dozens, hundreds, or even thousands of employees suddenly see a drop in benefits and have to pay for their own health just so some stuck up CEO can make a few extra hundred grand a year. Isn't the pay ratio 475:1 in America?
__________________
ladyfreckles is offline   Reply With Quote
Old 06-27-2012, 09:09 AM   #13
Rock n' Roll Doggie
VIP PASS
 
mama cass's Avatar
 
Join Date: Aug 2004
Posts: 5,906
Local Time: 08:21 PM
it's truly disgusting... well, i think people are waking up and starting to gripe about the injustices at long last at least! they can't get away with it for too much longer can they?
__________________
mama cass is offline   Reply With Quote
Old 06-27-2012, 10:26 AM   #14
Blue Crack Addict
 
anitram's Avatar
 
Join Date: Mar 2001
Location: NY
Posts: 16,297
Local Time: 02:21 PM
Quote:
Originally Posted by purpleoscar View Post
Maybe a shareholder revolution?
Yarite.

Like most people care so long as their dividend cheques are coming in and their returns are greater than they would have been sitting in a bank account.
__________________
anitram is offline   Reply With Quote
Old 06-27-2012, 12:35 PM   #15
Rock n' Roll Doggie
ALL ACCESS
 
purpleoscar's Avatar
 
Join Date: Jul 2004
Location: In right wing paranoia
Posts: 7,597
Local Time: 12:21 PM
Quote:
Originally Posted by anitram View Post
Yarite.

Like most people care so long as their dividend cheques are coming in and their returns are greater than they would have been sitting in a bank account.
The context is that the companies are not making money or are making less money than in the past (where would dividend cheques come from if there's no retained earnings?) yet big bonuses are being paid out. It's like getting a pay cheque without actually earning it or borrowing from the bank for the bonuses and not for the company. The problem is that in the past shareholders used to be larger owners of shares and could influence directors and CEOs didn't have an entitled job. Nowadays investors often don't even own the shares but just mutual fund units and so they are so divorced from the reality of companies that CEOs and directors and government insiders can create an entitled class of their own like an aristocracy via basic networking. A lot of shareholders are gamblers so they don't own the shares for that long. They just ride the train until they find another train that is better. Of course you could lose your shirt doing that. Basically the general public and powers-that-be are all greedy and want to make a killing so they can retire early because they don't like work and would rather play all the time. Since retained earnings on a Statement of Financial Position can only be collected over time all these large capital gains must be earned on the back of losers who bought at the wrong time. This mentality of "flipping" greedy consequences is pervasive in our society. Real capital gains are retained earnings. The rest is just a zero sum game. Profits happen with more efficiency and can be reinvested so that companies can grow, products become more numerous (cheaper standard of living) and products increase in quality. All the other stuff that doesn't fit into that often involves bad regulations that don't do anything, good regulations that aren't even being enforced and just plain robbery.
__________________

__________________
purpleoscar is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT -5. The time now is 02:21 PM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Design, images and all things inclusive copyright © Interference.com