The social cost of runaway bank pay

August 18, 2009

If only the economy were bouncing back as fast as banking compensation.

Even as the first anniversary of the collapse of Lehman Brothers draws near, bankers and traders are now grabbing a larger share of their institutions’ net revenue than they did during the boom years. The leading U.S. banks are on track so far this year to pay their employees $156 billion — more than in sunny 2006.

Humbug watch: Lord Myners

July 1, 2009

Lord Myners has joined the great pay debate with some pungent remarks urging boards  to rein in executive remuneration. The City minister, who has form in this area having signed off on Fred Goodwin’s monster pension, urged them to disregard the “insidious influence of benefit consultants” when setting pay, and think more about how a CEO’s package related to the salaries of more junior staff.

from Neil Collins:

Executive rewards: give the shareholders a veto

June 23, 2009

Do we really want to do something about executive pay? Here's a simple, elegant and transparent way to stop the gravy train: insist that no contract with any director can be binding on a company until it has been approved by its shareholders in general meeting.