Even though there was no satisfactory resolution on executives’ compensation at a recent banker’s meeting in Berlin, Germany. I am pleased to learn that one of the top guns on Wall Street did have a few workable ideas for his counterparts to consider. Here is what Lloyd Blankfein, CEO of Goldman Sache Group Inc., had suggested to rein in excessive bonus payments:
- Ban multiyear guaranteed contracts.
- Allow claw backs on incentive pays.
- Pay bonuses in company stock that can only be sold upon holder's retirement.
It is also very pleasing for me to learn that one of Mr. Blankfein’s astute suggestions is somewhat similar to the ones that I put forward in my previous blog "Desperate Measure," of February 8, 2009. Among other things, Mr. Blankfein's other ideas do not appear to be mind-boggling propositions and are easy to implement. Now it is up to the businesses and their leaders to put these straight-forward measures to work. Aside from what Mr. Blankfein had suggested, the company should have a payroll system that is fair to all employees. And compensation to executives is set in line with how the company pays its support staff. Last but not lest, the company's fair entitlement program shall never reward managers who take undue risks with other people’s money. Ayee
*Source: "Compensation backlash gains momentum," The Globe and Mail, Sept 10, 2009
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