Business

Regulation on Top Salaries
by Milota Sidorova

After the avalanche of criticism over controversial case of top management in financial sector, it seems Washinghton is finally preparing a measurement to controll competitive bonuses and compensations. The situation was far behind business and moral ethics. Goldman Sachs was paying more than $500,000 bonus per employee. Citigroup counted with $5.3 billion and Bank of America was dividing $3.3 billion. Although the news hasn’t been confirmed officially, Yahoo server claimed Kenneth Feinberg, the speacial master at Treasury was getting together a plan for transformed payments. This would cause any from seven governmental supplied organizations could get more than $200! ,000 per month and $25,000 in bonuses per executive. Literally some of top managers would have to lower their incomes by 90 percent. There’s also another concept, yet accepted by the banks – employees could get their salary divided between actuall cash and stocks. Stocks would make a compensation in long term and tie employees with the organization destiney. Seen from the public view, one must say such tool was indispensable, but it’s coming a little late. As for the companies, regulation will affect only those who got the bailout money and haven’t repaid them back. To name the companies, we’re speaking of Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial. JP Morgan and Goldman Sachs due the repayment are out of the game. According press source Feinberg is obliged to pass the regulation before October 31st. The bonuses should be limited – to name a few some o! f the companies offers things such as country club memberships! , privat e planes and company cars. This will be the subject to governmental permission in the future.

related story (sgx15685): http://news.yahoo.com/s/ap/20091022/ap_on_go_pr_wh/us_obama_...

by Milota Sidorova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World! .

posted by Blog TechSource @ 7:07 PM