21
Jul
2020
Get Ready for the Executive Pay Backlash
Categories: Financial Services
History has a way of repeating itself, particularly in finance.
In the last financial crisis a dozen years ago, banks received taxpayer-backed bailouts and paid hefty bonuses to their executives. The uproar was loud and lasting.
Now Wall Street seems poised for a repeat, after a massive federal coronavirus stimulus and a liquidity jolt from the Fed fattened the banks’ bottom lines and their bonus reserves. Three big banks – Goldman Sachs, JP Morgan and Morgan Stanley – boosted compensation expense by a third, according to their earnings reports last week.
One big difference between this crisis and the last is that federal relief has been spread across many industries, not just banking....
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