<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published September 3, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Bailed-out bankers get options windfall
Top 5 execs have combined increase of US$90m in value of their options
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>(NEW YORK) As shares of bailed-out banks bottomed out earlier this year, stock options were awarded to their top executives, setting them up for millions of dollars in profit as prices rebounded, according to a report released yesterday.
<TABLE border=0 cellSpacing=0 cellPadding=5 align=left><TBODY><TR><TD bgColor=#ffffff>[FONT=Geneva, Helvetica, Verdana, Arial, sans-serif]<!-- REPLACE EVERYTHING IN CAPITALS WITH YOUR OWN VALUES --><TABLE class=quoteBox border=0 cellSpacing=0 cellPadding=0 width=144 align=left><TBODY><TR><TD vAlign=bottom>
</TD></TR><TR><TD bgColor=#fffff1><TABLE border=0 cellSpacing=0 cellPadding=0 width=124 align=center><TBODY><TR><TD vAlign=top>'Not only are these executives not hurting ... but they might get big windfalls because of the surge in the value of their shares.'
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</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>The top five executives at 10 financial institutions that took some of the biggest taxpayer bailouts have seen a combined increase in the value of their stock options of nearly US$90 million, the report by the Washington-based Institute for Policy Studies said.
'Not only are these executives not hurting very much from the crisis, but they might get big windfalls because of the surge in the value of some of their shares,' said Sarah Anderson, lead author of the report, America's Bailout Barons, the 16th in an annual series on executive excess.
The report - which highlights executive compensation at firms such as Goldman Sachs Group Inc, JPMorgan Chase & Co, Morgan Stanley, Bank of America Corp and Citigroup Inc - comes at a time when Wall Street is facing criticism for failing to scale back outsized bonuses after borrowing billions from taxpayers amid last year's financial crisis. Goldman, JPMorgan and Morgan Stanley have paid back the money that they borrowed, but Bank of America and Citigroup are still in the US Treasury's programme.
It's also the latest in a string of studies showing that despite tough talk by politicians, little has been done by regulators to rein in the bonus culture that many believe contributed to the near-collapse of the financial sector.
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</TD></TR></TBODY></TABLE>The report includes eight pages of legislative proposals to address executive pay, but concludes that officials have 'not moved forward into law or regulation any measure that would actually deflate the executive pay bubble that has expanded so hugely over the last three decades'.
'We see these little flurries of activities in Congress, where it looked like it was going to happen,' Ms Anderson said. 'Then they would just peter out.'
The report found that while executives continued to rake in tens of millions of dollars in compensation, 160,000 employees were laid off at the top 20 financial industry firms that received bailouts.
The CEOs of those 20 companies were paid, on average, 85 times more than the regulators who direct the Securities and Exchange Commission and the Federal Deposit Insurance Corp, according to the report. -- Reuters
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Bailed-out bankers get options windfall
Top 5 execs have combined increase of US$90m in value of their options
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>(NEW YORK) As shares of bailed-out banks bottomed out earlier this year, stock options were awarded to their top executives, setting them up for millions of dollars in profit as prices rebounded, according to a report released yesterday.<TABLE border=0 cellSpacing=0 cellPadding=5 align=left><TBODY><TR><TD bgColor=#ffffff>[FONT=Geneva, Helvetica, Verdana, Arial, sans-serif]<!-- REPLACE EVERYTHING IN CAPITALS WITH YOUR OWN VALUES --><TABLE class=quoteBox border=0 cellSpacing=0 cellPadding=0 width=144 align=left><TBODY><TR><TD vAlign=bottom>
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- Ms Anderson
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'Not only are these executives not hurting very much from the crisis, but they might get big windfalls because of the surge in the value of some of their shares,' said Sarah Anderson, lead author of the report, America's Bailout Barons, the 16th in an annual series on executive excess.
The report - which highlights executive compensation at firms such as Goldman Sachs Group Inc, JPMorgan Chase & Co, Morgan Stanley, Bank of America Corp and Citigroup Inc - comes at a time when Wall Street is facing criticism for failing to scale back outsized bonuses after borrowing billions from taxpayers amid last year's financial crisis. Goldman, JPMorgan and Morgan Stanley have paid back the money that they borrowed, but Bank of America and Citigroup are still in the US Treasury's programme.
It's also the latest in a string of studies showing that despite tough talk by politicians, little has been done by regulators to rein in the bonus culture that many believe contributed to the near-collapse of the financial sector.
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'We see these little flurries of activities in Congress, where it looked like it was going to happen,' Ms Anderson said. 'Then they would just peter out.'
The report found that while executives continued to rake in tens of millions of dollars in compensation, 160,000 employees were laid off at the top 20 financial industry firms that received bailouts.
The CEOs of those 20 companies were paid, on average, 85 times more than the regulators who direct the Securities and Exchange Commission and the Federal Deposit Insurance Corp, according to the report. -- Reuters
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