More than one-third of Wall Street workers are expecting to make more money this year than last, Bloomberg reports this morning. But come Christmas, the Tiny Tims slaving at places like Bank of America, Citigroup, AIG, and you know the rest may only be thankful for their jobs. Kenneth Feinberg, Obama’s special master for executive compensation, is reportedly finally about to render a decision on executive compensation for TARP-supported banks that will cut their salaries by up to 50 percent and further tether it to their company’s performance.
From the Journal:
Instead of awarding large cash salaries, Kenneth Feinberg is planning to shift a chunk of an employee’s annual salary into stock that cannot be accessed for several years, these people said. Such a move, the most intrusive yet into corporate compensation, would mark the government’s first effort to curb the take-home pay of everyone from auto executives to financial traders.
This is just their salaries, but bonuses will be restricted too. Under rules passed by Congress earlier this year, no executive at any bailed-out bank should be allowed to make more than one-third of their total compensation. God bless us, every one!