This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bankers Have No Reason to Cry Over Pay

NEW YORK ( TheStreet) -- The pay overhaul and temporary bonus cuts that are now sweeping the financial industry may prove which employees are devoted to their companies, and which are devoted to their lifestyle.

Throughout the financial crisis that struck in late-2007, millions of Americans have lost their homes or jobs, and faced furloughs, pay cuts or waning perks until business conditions improved.

Meanwhile, the financial sector was no stranger to layoffs initially, but its turnaround in hiring and compensation was remarkably quick. Some of the highest-paid employees at the banks and financial institutions that played the biggest role in the crisis haven't suffered much at all. In fact, before banks were shamed into revising pay plans, bonuses were poised for an all-time high at certain firms.

As it stands, pay czar Kenneth Feinberg is ordering sizable cuts in compensation for the highest-paid employees at a handful of companies. His decision applies just for 2009 pay at just five companies that received "exceptional" taxpayer support: American International Group (AIG), Citigroup (C), General Motors, GMAC, Chrysler and Chrysler Financial.

Bank of America (BAC), once included in Feinberg's review, has managed to wiggle out of pay restrictions by repaying TARP funds in the nick of time -- except for CEO Ken Lewis, who will depart the firm at year-end with no 2009 compensation. He will, however, retain a retirement package estimated at over $70 million.

AIG CEO Bob Benmosche managed to get Feinberg to weaken his more severe pay rulings for the highest-paid employees by threatening to quit. Several other top-level executives have threatened to do the same, and general counsel Anastasia Kelly is reportedly planning to quit.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs