Barclays Bonuses: Less Cash, More Stock Could Be Model For Other Banks

Dealbreaker.com:

British-based Barclays Capital may be a bellwether for Wall Street's bonus season. The bank is ratcheting up stock payments to its execs and axing the amount of cash it pays out in bonuses this year - a move that may influence US-based firms.

Read the whole story: Dealbreaker.com

Comments

[NO more Bonus]

Due to Obama's inability to create an effective jobs program the only beneficiaries of this recovery is Wall Street- the same it's been since the 80's. FDP knew how to make work, but Obama doesn;t or chooses not to.

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because of this he may lose in 2012.

[need more jobs]

All this economic recovery talk in BS. Something democrats & republicans can agree on.

good articles; http://financeopinionss.blogspot.com

[venusvictrix]

Stock-based bonus plans have already proven to be problematic due to the strong incentive to manipulate earnings in much the same way cash-based bonuses encourage short-term profits over long-term performance.

The only part of this plan that moves in the right direction is the clawback provision.

[DiogenesOfAlaska]

It's true that stock-based bonus plans don't solve all problems and can create new ones, especially when not done right. But I would still say that the change is a move in the right direction.

My beef is with the chutzpah that lies in the reactions to the proposed change. As if there was something open to debate. It's obvious that even those changes don't go far enough to provide at least some hope that compensation could end up reflecting the actual risks taken.

The only 'excuse' I can imagine is that bankers would implicitly admit that they have taken shareholders, customers and taxpayers for a ride in the past if they agree for adequate compensation plans now.

But to be perfectly honest, I have little empathy for that concern. It would be like arguing that you can't stop the Vietnam war because the veterans couldn't stand the revelation that they indeed fought for an ill-defined cause.

[abbienormal]

This is what most other corporations do. It will work just as long as the options are not constantly repriced so that the execs do not suffer any losses.

[munki]

Incentive here is for them to raise the stock price...

Do a good job... but it needs to be a profitable company!

Much better than... Millions of dollar siphon by CEOs today...

but... future is up to their work...

stock option... ??? yet to be analyzed further...

[BuffettBIllionaireNextDo]

Stocks are overvalued still. Market keeps ignoring job loss.

good articles: http://financeopinionss.blogspot.com