Bankers Pay is still very high
Posted by admin . Published on 25 February 2010, Received
The chairman of US bank Morgan Stanley, John Mack, has said that bankers are still paying themselves too much.
“I still don’t think the industry gets it,” Mr Mack said.
Banks are reforming pay by focusing too much on structure - such as deferring bonuses to later - rather than the huge amounts being paid out, he said.
Earlier this week, the New York state Comptroller said that Wall Street banks may have paid more than $55bn in bonuses last year.
“If we don’t do something, the government will do something” on pay, Mr Mack said.
The issue of bonuses has become a huge political issue on both sides of the Atlantic as many of the banks that are paying bonuses to staff made losses during 2009 and were bailed out by taxpayers.
