UNDERNEWS

Undernews is the online report of the Progressive Review, edited by Sam Smith, who covered Washington during all or part of one quarter of America's presidencies and edited alternative journals since 1964. The Review has been on the web since 1995. See main page for full contents

July 23, 2009

TOP SIX BANKS UP EMPLOYEE PAY 23% AS REST OF ECONOMY ROTS

Washington Post - Wall Street's biggest banks are setting aside billions of dollars more to pay their executives and other employees just months after these firms were rescued with a taxpayer bailout, renewing questions about compensation practices in the aftermath of the financial crisis. The recent outcry over bonuses at bailed-out firms prompted public alarm and promises of reform from financial leaders, who acknowledged that pay and bonuses should not reward risky short-term business decisions -- such as those that contributed to the meltdown -- but instead longer-term financial performance. But Wall Street, helped by improving profits, is on track to pay employees as much as, or even more than, it did in the pre-crisis days. So far this year, the top six U.S. banks have set aside $74 billion to pay their employees, up from $60 billion in the corresponding period last year.

1 Comments:

Anonymous Anonymous said...

My husband works for one of these banks, in a backshop area, where each year he is rated quite highly on his review. His last raise was 2%, instead of the 5% or more he usually gets, all his co-workers got similar puny raises too, so clearly this 23% increase in pay is all going to the top while hardworking employees, the ones who actually do the work, are seeing their raises reduced to a pittance.

July 24, 2009 11:49 AM  

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