Pay Czar Ken Feinberg vs. Wall Street Bonuses

Today, Pay Czar Kenneth Feinberg disclosed some information: Certain top Wall Street execs, while their 17 banks were on the TARP (aka federal, aka citizen-sponsored, payroll) awarded themselves nearly $1.6 billion in bonuses in 2008, 80% of which would have been unwarranted under pay guidelines established in February, 2009  for TARP awardees. Though, he's not going to ask for that money back (hey, it was the federal government's fault that it bailed out these banks and forgot to tell their execs not to use that money for bonus payments ) he now says this kind of thing is less likely to happen in the future because:

"If the company's board of directors has identified that the firm is in a crisis situation, the compensation committee would have the authority to restructure, reduce or cancel pending payments to executives."

Earth to Feinberg: The board of directors is chosen by the company leaders - aka the execs who get paid the big bucks - they don't usually keep those comfy board positions if they go around saying their firm's in crisis, or that the guys that gave them their board seats are overpaid.

Separately, that $1.6 billion number is nothing if you consider the total compensation paid out by just the top 6 banks in 2009. While floating on various federal subsidies, including (BUT - and this is a key thing no one in Washington wants to get - NOT LIMITED TO) TARP, Fed guarantees and loan facilities, FDIC debt guarantees, and general cheap funding: the top 6 banks paid out $124 billion in total compensation, while still enjoying $115 billion in active subsidies. Check it out in my reports. Tell that to the board.

And, by the way, none of this is addressed sufficiently in the financial 'reform' bill.