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| Bank of New York Mellon CEO Opposes Limits on Bonuses |
| 2009-02-19 |
| He said he opposes a limit on bankers' bonuses because it could make senior executives quit. And do what? "The unintended consequences of an un-level playing field could mean that at a time when you want stability in senior management and you want your banks to be more successful again, I would worry that you could potentially lose senior executives," Kelly said. Losing the cream of the crap is a feature, not a bug. Multiple bank failures & widespread insolvency are prima facie evidence of incompetent management deserving termination, not just withholding bonuses. Solvent, profitable banks should be free to pay all the bonuses they want. Name a couple of big, solvent, profitable banks. |
| Posted by:Anguper Hupomosing9418 |
| #4 Government should have NOTHING to say about executive salaries. On the other hand, the salaries should have to be approved by shareholders. Who should also have the opportunity to boot CEO's that are running their companies into the ground (NO golden parachute). |
| Posted by: DMFD 2009-02-19 19:07 |
| #3 AH9418: I agree with some sentiment but if you were a major bank and you were told by Fannie and Freddie that you could buy and bundle these mortgages as government backed securities would you in hind sight think that a good deal for your shareholders? And if you were approached by ACORN or a reasonable facsimile, would you cave to their extortion regarding your plans for expanding your retail operations and start making no-doc mortgages? I agree that greed is contagious and the banks lacked back-bone and rigid due diligence but then so did the US government and its controlling Congress. |
| Posted by: Jack is Back! 2009-02-19 11:23 |
| #2 Name a couple of big, solvent, profitable banks. Maybe here. If: Revenue USD 14.418 billion (2007) Net income USD 1.855 billion(2007) Total assets USD 67.177 billion Total equity USD 14.367 billion this qualifies as big. Then again, look who owns and operates it. |
| Posted by: Procopius2k 2009-02-19 10:32 |
| #1 From another Bloomberg opinion piece today: "Morgan StanleyÂ’s board in 2005 guaranteed Chief Executive Officer John Mack he would be paid no less than the average of that of his four major counterparts, who were, of course, the firmÂ’s competitors. The implication that the more successful your opponents, the more you earn is ludicrous; and, although Mack later rejected that provision, it speaks volumes about how much bankers assume fat-cat pay is an entitlement." |
| Posted by: Anguper Hupomosing9418 2009-02-19 09:57 |