Wednesday, October 29, 2008

Wall Street Dreams

"Government investments in financial institutions could crimp executive pay on Wall Street, at least for a while, and hinder firms' ability to attract and retain top talent. ... The rules cover the chief executive officer, chief financial officer and the three other highest paid officials at participating institutions. But they could affect others on Wall Street, and beyond. ... In weighing that decision, bank and Wall Street executives will have to consider whether they may drive some top performers to employers not covered by the rules. 'The hedge funds and the private-equity firms will go after some of the other talent that doesn't fall under these restrictions,' says Irving S. Becker, head of the executive compensation practice at Hay Group, a management consultancy", WSJ, 15 October 2008.

"Let's see if I get this right. In exchange for their expertise and leadership skills, Wall Street CEOs and managers are paid millions, tens of millions, and in several cases, hundreds of millions in compensation. ... What leadership? What expertise? How could lower-priced leadership be any worse for Wall Street?," Vern Mastel letter to the WSJ, 21 October 2008.

"Retain top talent? What are you talking about?", John Krustins letter to the WSJ, 21 October 2008.

This is laughable. Where will Wall Streeters go? To hedge funds, half of which may fold in the next 24 months? Threats by this "talent" to leave should be greeted with, "Thank God. Now you get no severance pay". Wall Street's average compensation per employee is over six times the rest of New York's private sector, my 18 October 2008 post. Why doesn't competition on Wall Street reduce its compensation to that of the rest of industry? Where is "our" DOJ to prosecute what I conclude is a Wall Street cartel that facilitates this? Hey Mike Garcia, are you looking into this, or are you too busy prosecuting nickel and dime (ugh) crack dealers?

Mastel and Krustins have this right. Some talent.

3 comments:

Anonymous said...

As Wall Street deflates >> expanding New York dreams...

http://www.google.com/support/jobs/bin/static.py?page=why-ny-ny.html

printfaster said...

Every Wall Street investment bank should have been place in trusteeship. Period. The executives left would be paid with government checks on a government pay scale, along with all government benefits.

Cheese.

Anonymous said...

Bankers and brokers looking to escape the financial meltdown are scrambling to relocate their families, possessions and rarified talent far from Wall Street to places such as Florida, Chicago, Milwaukee, Virginia and Asia.

http://apnews.myway.com/article/20081026/D942BR8O0.html