Bank Pay Worse?

According to a soon to be released report by The Corporate Library for CII, some financial firms actually rewarded executives after the crisis with “massive salary increases,” including four Wells Fargo & Co. officials who saw their base salary at least triple from 2008 to 2009, according to the report. Wells Fargo, Citigroup Inc. and Bank of America Corp. each “exploited a loophole” in rules triggered by the Treasury Department’s bailout of financial firms in late 2008 by paying salaries ranging from $3.3 million to $9.9 million, the report added.

The group recommended that U.S. financial firms tie pay even more closely to future performance. The practice is more common at non-U.S. banks, where bonuses depend on whether an employee maintains his performance. Mr. Hodgson also suggested that clawback provisions be toughened beyond the material loss, fraud or earnings restatements that trigger them now.

via Did New Rules Worsen Pay Situation? –, 10/29/2010.

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