Recent Posts

Thursday, July 30, 2009

Cuomo: Bank Revenues and Bonuses Don't Balance

Several financial giants that received federal bailout money in the last year paid out bonuses to employees in 2008 that greatly exceeded the amount of profit generated by the banks, according to a study on executive compensation released by New York State Attorney General Andrew Cuomo Thursday.

Despite claims by bank executives that bonuses are tied to the company's performance, the report states that "there is no clear rhyme or reason to how the banks compensate or reward their employees."

Cuomo's investigation "suggests a disconnect between compensation and bank performance that resulted in a 'heads I win, tails you lose' bonus system."

link: Study: Bank Bonuses Far Exceeded Profits - CBS News


Post a Comment