So much for executive bonuses being tied to company performance:
This might have been one of Wall Street's most dismal years in a decade, but that hasn't stopped bonus cheques from rising an average of 14 per cent.
Four of the biggest U.S. investment banks - Goldman Sachs Group Inc., Morgan Stanley, Lehman Brothers Holdings Inc. and Bear Stearns Cos. - will pay out about $49.6 billion US in compensation this year. Of that, bonuses are traditionally estimated to represent 60 per cent, or almost $30 billion US.
Yes, that would be the same Bear Stearns Co. that just went belly-up and had to be bailed out by the US Federal Reserve in a last-ditch attempt to forestall a wholesale collapse in the securities industry.
You must be logged in to comment.