While I can imagine banks will find some way around it, but in the mean time this has to be the ABSOLUTE DUMBEST thing I've ever heard in my life. If the compensation is so outrageous, then why don't the SHAREHOLDERS do something about it. It's called corporate governance. Let's use an example of EXCESS compensation:
Quote:
The Dynamic Investment Bank is having a rough time. Projections are that DIB will lose about $5 billion dollars this year and will have to lay off as many as 2000 employees. You have a well-earned reputation as a financial turn-around artist. Many companies are trying to hire you. You tell DIB that there is no way you can avoid any losses this year, and some layoffs are inevitable. But you do think that you can save the company a lot of money and a lot of good employees. Here's the deal you want. In addition to a good salary, at the end of the year you want one-quarter of one percent of the amount by which you reduce that projected $5 billion loss. DIB agrees. At the end of the year the company has lost not $5 billion, but $2 billion and is on its way to profitability next year. What's more, you only had to lay off about 400 employees. Now ... you have earned a bonus of $7,500,000. Should you get it? Do you deserve it?
Well...now that won't be a problem because no one in their right mind with any talent would ever take a job that limits your compensation. I can imagine if you have ANY talent whatsoever, the minute the job market begins to recover, you are gone. Start your own firm, go to Evercore, Lazard, Hedge Fund, PE, or whatever, but I can guarantee they leave the banks that had to take TARP money.