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Easy Street's Potholes

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December 01, 2010 – Comments (4)

My column for Fool.com today covers a Corporate Library report on Wall Street compensation before and after the financial crisis. Guess these guys and gals have achieved the dream of being on "Easy Street," given signs policies to emphasize long-term performance targets are still lacking. And when quality and true performance are lacking, things fall apart, for shareholders and everybody else. The Easy Street address isn't really the good part of town.

4 Comments – Post Your Own

#1) On December 01, 2010 at 7:47 PM, rd80 (98.66) wrote:

 From your article:

As the report dismally relates, "little or no Wall Street compensation was linked to long-term performance measures."

According to Andrew Ross Sorkin's, "Too Big to Fail" there was at least one example of a Wall St. firm with compensation linked to long-term performance.  Lehman Brothers.

I'm not saying compensation and long-term performance shouldn't be tied together, but it sure didn't help in Lehman's case. 

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#2) On December 02, 2010 at 8:11 AM, TMFLomax (29.19) wrote:

rd80

Ouch! Thanks for bringing that up, that's pretty nuts. Not to mention good to know. (And I have to read that book!)

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#3) On December 02, 2010 at 9:06 AM, rd80 (98.66) wrote:

Hi Alyce,

I just thought it was interesting that Lehman was cited as an ironic example of a good pay-performance connection in Sorkin's book.  I didn't mean to imply that linking pay to long term performance is a bad idea.

I enjoyed Sorkin's book and posted a short review.  It's a long read and won't have much appeal to anyone who doesn't have an interest in markets, but I think anyone who followed bailout nation will find it fascinating.

And that's another dime for Thurgood Marshall Academy

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#4) On December 02, 2010 at 4:28 PM, lemoneater (79.38) wrote:

Do you know of any CEO or CFO that makes less than $200,000?

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