Financial Roundup: Bank Mergers, Fat Wall Street Bonuses, Paulson Backlash

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  TKGImpact10/23/08 Report as spam
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  RE: Financial Roundup: Bank Mergers, Fat Wall Street Bonuses, Paulson Backlash

  It is foolish of investment banks and other large financial services firms to dole out hefty bonuses given the current meltdown. The rationale for these outsized annual bonuses has always been that they're necessary to reward outstanding performance and keep/attract top talent. In a performance-based corporate environment, bonuses should be paid only when merited by successful financial results and other KPIs. The amount of the bonus should be in direct correlation with the profit growth achieved. Conversely, in a time of deep losses & bailouts and failures in leadership and business judgment, when performance can hardly be classified as stellar, bonuses should not be paid. Where are these "rainmakers" going to go in the current economic morass - there is little risk of flight of top talent, many of whom are clearly overrated.
  
  This is a missed opportunity by Wall Street to rein in its outrageous excesses via self-governance before it is done to them by increased oversight and regulation. Public and shareholder outrage over this issue has risen to a boil. It's time to clean up your act!