This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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!

Wall Street Pay Remains Touchy Subject

Stocks in this article: C AIG GS

NEW YORK ( TheStreet) -- The subject of Wall Street pay just won't go away.

Goldman Sachs (GS), which typically has among the richest and best-paid employees, distributed the smallest compensation in its history, on a relative basis. American International Group (AIG) is reportedly overhauling its entire pay structure, moving more toward a model pioneered by former General Electric (GE) CEO Jack Welch.

Citigroup (C) sold off an entire business to get rid of its manager's pay controversy. For their part, the departing CEOs of both Bank of America (BAC) and Morgan Stanley (MS) took home no incentive compensation for 2009.

Just about every firm on Wall Street has reviewed and altered pay practices over the past year. The effort has been such that even President Obama, who has been leading the charge against big Wall Street pay packages -- calling the recipients "fat-cat bankers" as recently as December -- softened his stance this week.

In an interview with Bloomberg BusinessWeek, Obama was asked how he felt about JPMorgan Chase (JPM) CEO Jamie Dimon receiving a $17 million stock bonus, and Goldman CEO Lloyd Blankfein receiving $9 million in equity-based compensation, for their performance last year.

"I know both those guys," said Obama. "They're very savvy businessmen. And I, like most of the American people, don't begrudge people success or wealth."

Yet the steady drumbeat of questions and criticism won't abate.

The reason is simple: The wealth gap between Wall Street and the rest of America is huge. According to federal data, the median household income was less than $51,000 in 2007 -- the year that represented Wall Street's peak. Keep in mind that each household has roughly 2.6 people, meaning each human gets $19,590 to survive on each year, or $53.67 per day.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
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!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • 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