Wall Street Slashing Pay—Even for Best Performers

Friday, 8 Jul 2011 | 12:51 PM ET

Large Wall Street banks are starting to scale back compensation on trading desks as shareholders grow increasingly restless over weak returns.

Goldman Sachs , Morgan Stanley and some other large U.S. investment banks are not just laying off weak performers and back-office employees. They are also cutting the pay of those they are keeping, scrutinizing expense reports and expecting even the most profitable workers to bring in more business for the same amount of compensation.

"Put simply, in order to get your $1 million bonus before, you had to generate X amount of revenue; now it's X plus 50 percent," said Mark Poerio, a partner at law firm Paul, Hastings, Janofsky & Walker who advises banks on pay.

Wall Street has been overhauling pay practices over the past 2-1/2 years to better align incentives with risk. Banks have lifted base salaries, deferred bonus payments and introduced clawback provisions to protect against trades and deals that seem profitable at first, but may later go awry.

More: http://www.cnbc.com/id/43686263

the Republican Derivative Crash of '08 will now be eating one another, while Republicans let them hang twisting and writhing over the economic abyss.

This may cost Obama the Presidency, but I have to say, "Bravo!"

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and move to Asia:



http://michael-hudson.com/2010/12/deficit-hawks-one-two-punch/


HUDSON: Well, if you study biology, you know that there are more species of parasites than there are of hosts–of course it’s not sustainable. But to a parasite, you don’t have to be sustainable, because you’re a parasite. That’s your mindset. And you want to take what you can, and at a certain point you devour the host and skip to new hosts. That’s what they’re doing: they’re going to shrink the American economy, and they’re going to move to Asia or to other countries, which is why you have the economic split between the BRIC countries’ currencies that are going up and the dollar and the euro that are going down.

from a website with HEAVY Asian influence. I asked him about his Asian sourcing: in light of the fact that Asia is apparently waaaay ahead of us in alternative energy development and investment, so they don't want us getting into that area, as a response to GCC, and competing with them, hence the OPINION piece he was quoting about the un-reliability of environmental research, to deter interest in alternative technologies. He did not Reply. This strategy is working, because I have run into grassroots' oil activists at Kevin Yoder's townhalls a couple of times lately and continue to see bumper stickers like "Drill here! Drill now!" around Cupcake Land.

:)

I think we'll see more offshore, unregulated trading, with a lot of it masquerading as regular ol' "murrican investments.

Bring me the popcorn.

Just shut up, and enjoy the ride. Dont worry about crashing the world economy.

Solidarity, with U.S. Labor!

Choking up here, really . . . .

:rofl: