Posts Tagged ‘wall street’

Getting a Grip on Executive Pay (Wash Post)

Tuesday, February 17th, 2009

[Editor's note: Obama is set to sign the latest stimulus package today. Congress included restrictions on executive pay. Here's how it breaks down.]

Republished from The Washington Post.
Originally published: 14 February 2009.

By the Numbers: Executive Pay

The stimulous bill passed by Congress restricts senior executives’ compensation at firms receiving funds from the government’s Troubled Assets Relief Program (TARP).

$3.65 million > The average CEO’s compensation in 2007 for 196* public companies participating in the government bailout program.

Front page A1 layout featuring this story (view PDF).

Related article:

EXECUTIVE PAY: Congress Trumps Obama by Cuffing Bonuses for CEOs

 

By Tomoeh Murakami Tse

Washington Post Staff Writer
Saturday, February 14, 2009; Page A01

The stimulus package Congress passed last night imposes new limits on executive compensation that could significantly curb multimillion dollar pay packages on Wall Street and goes much further than restrictions proposed by the Obama administration last week.

The bill, which President Obama is expected to sign into law next week, limits bonuses for executives at all financial institutions receiving government funds to no more than a third of their annual compensation. The bonuses must be paid in company stock that can be redeemed only when the government investment has been repaid. With the measure, lawmakers seek to address public outrage over extravagant Wall Street paydays even as taxpayers bail out the industry.

Unlike the rules issued by the White House, the limits in the stimulus bill would apply to top executives and the highest-paid employees at all 359 banks that have already received government aid.

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The Crash: Risk and Regulation (Washington Post)

Thursday, October 16th, 2008

How did the most dynamic and sophisticated financial markets in the world come to the brink of collapse? The Washington Post examines how Wall Street innovation outpaced Washington regulation.

[Editor's note: All content republished from The Washington Post's 15 October 2008 edition.]

The Story

What Went Wrong?

How did the world’s markets come to the brink of collapse? Some say regulators failed. Others claim deregulation left them handcuffed. Who’s right? Both are. This is the story of how Washington never caught up to Wall Street.

Key Players in Market Regulation
Bio pictures and quotes.

The Graphics

Creating the Wave

Riding the Crest
Wall Street devised exotic securities to earn fees from the debt boom.

Click graphic to see full size version.

The Crash
Overburdened by debt, a relatively small percentage of homeowners began missing mortgage payments, creating a domino effect that sent losses throughout financial markets.

Click graphic to see full size version.

Graphics by Brenna Maloney, Jill Drew, Ellen Nakashima and Todd Lindeman – The Washington Post – October 15, 2008.