Tuesday, February 23, 2010
Banking Compensation Around The World
This chart put together by Reuters' shows some large differences between the pay among CEO's of the worlds top banks. It is far from an even distribution, and the contrast between the Bank of China and JPMorgan is fairly large.
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These statistics do not surprise me. One of the major issues the American people continue to discuss relates to the massive compensation bank CEOs receive. It is ridiculous to think that out government has spent billions of dollars to bail out these banks, but yet they are capable of giving out outrageous compensation to their executives. However, President Obama has made the necessary steps to reduce these compensations, such as requiring these CEOs to return the compensation they received.
ReplyDeleteI was wondering if the large difference in CEO compensations between big American banks and Chinese banks could to some extent be attributed to the disparity in living standards. Apparently, it's way more costly to reside in the US.
ReplyDeleteMy other concern is that since giving large compensations to the top executives has become so common among the American financial institutions, is it possible for an American bank to single-handedly reduce its compensations? Perhaps it would risk losing valuable human resources to other companies in the industry.