Sunday, March 29, 2009

Shiftiness at Bank of America

Can't give exorbitant bonuses to bankers on the taxpayers dime? How about raising base salaries instead? Bloomberg reports:

"Bank of America, which has received $45 billion of taxpayers’ money, may raise the annual base pay for some managing directors to about $300,000 from $180,000, said the people, who declined to be identified because the final numbers are still under discussion. Salaries for less-senior directors would climb to about $250,000 from $150,000, and vice presidents would get $200,000, up from about $125,000, the people said."

I'm sure this will sit well with the public:

“We’re in an economic downturn, the government is pouring billions into banks, and these guys are boosting their salaries,” said Jason Kennedy, chief executive officer of London-based recruitment firm Kennedy Associates. “There’s an issue of public perception.”


  1. This comment has been removed by the author.

  2. this is actually a good thing. it aligns employees with long term goals of the firm rather than taking on more risk to increase their chances at profitability for a large bonus in the short-run.


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