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The ironies of compensation
Read today, courtesy of the AP: Bank executives are still raking in large salaries:
But clearly, the compensation committees at banks have an evil subplot: they also offer professional money management. That is, they ensured that those executives' hard-earned millions were carefully invested in a balanced portfolio of hedge funds, private equity placements and highly leveraged equities strategies, all sheltered with appropriate derivatives.
The economy gives with one hand, but it takes with the other!
Benefits included cash bonuses, stock options, personal use of company jets and chauffeurs, home security, country club memberships and professional money management, the AP review of federal securities documents found.Now, all those perks surely feel nice after a long day swilling government subsidies -- the chauffeur to the private plane that takes you to your country club.
But clearly, the compensation committees at banks have an evil subplot: they also offer professional money management. That is, they ensured that those executives' hard-earned millions were carefully invested in a balanced portfolio of hedge funds, private equity placements and highly leveraged equities strategies, all sheltered with appropriate derivatives.
The economy gives with one hand, but it takes with the other!
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THIS HAS GOT TO STOP NOW.
Quincy, if you don't expand on this tomorrow with the cite, I am going to. You have an extremely interesting argument lurking here. This was a good find at AP. I rec'd this morning and thought I would get back.
December 22, 2008 11:36 PM | Reply | Permalink
I hear ya, dickday. I rec'd this post today too but didn't have time to research it for myself.
December 22, 2008 11:52 PM | Reply | Permalink