Finance Matters

Posts Tagged ‘bonus’

Lloyds Banking Group’s decision retrospectively to reduce the 2010 bonuses of senior executives involved in mis-selling loan insurance is a sign of the increased risks that bankers are starting to face personally. The move strikes me as appropriate: it is …

If you’re looking for a data point that shows a shift in compensation culture on Wall Street and you took a quick look at the headline of this Bloomberg article, you might think you’ve found it: “Bonuses Met Wall Street Workers’ Expectations, Survey Shows.”

According to an email survey of 1,006 financial sector employees by eFinancialCareers.com, 56 percent said their bonus met or exceeded their expectations.

So, it sounds like Wall Street is beginning to accept that a different pay scale will be the norm, right?

Not really. The survey only measured expectations. As a result, it speaks more to the lengths Wall Street employees went this year to convince themselves that their pay was going to be terrible than to any absolute measure of satisfaction with that pay.

Is Wall Street really happy with 20 to 30 percent pay cuts, less cash and more restricted stock that vests over a period of years? Probably not.

Do they think that outcome is better than being fired or getting nothing? Yes! And that’s is precisely the news this survey delivers.

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See Also:

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• Another One Bites The Dust: Barclays To Cut Banker Pay By 25%-30%

Politicians would like to think that Stephen Hester’s decision to give up his bonus marks the start of a mass renunciation of “excessive pay” by private sector bosses. It is certainly time the UK corporate and political world moved on …

Lloyds Banking Group’s CEO in London will not accept an annual bonus for 2011 after taking a leave of absence from the embattled bank, according to a statement released Friday. [via Dealbook]

“As Chief Executive, I believe my bonus entitlement should reflect the performance of the Group but also the tough financial circumstances that many people are facing,” António Horta-Osório said in a statement.

In November, the chief executive was forced to take a break because he was working himself to the point of exhaustion.  He returned to his post earlier this month.

“I also acknowledge that my leave of absence has had an impact both inside and outside the bank including for shareholders. On that basis, I have decided to request that the Board does not consider me for a 2011 bonus.”

The chief executive said he wants to restore the bank’s profitability so the British taxpayers can get back their money.

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See Also:

• We Count Three Different Negative Bank Of America Stories Today
• Even Jesus Hated Bankers
• Aspiring Wall Streeter Emails Morgan Stanley’s CEO And Gets Some Harsh Advice

AOL hosts a “global operating meeting” twice a year. 

It’s holding one right this very moment in New York to firm up the company’s plans for 2012.

A couple sources tells us that Tim Armstrong just opened the meeting by giving everyone in attendance – about 150 execs – a $10,000 bonus on the spot.

“About $1.5 million just for showing up!” says our incredulous source.

An AOL PR rep declined to comment.

Google did a similar thing a year ago, except it gave ALL of its employees $1,000 bonuses and 10% raises.

Related: Here’s What AOL’s Top 100 Executives Will Talk About During This Week’s Big Meeting

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