After balking at government imposed pay restrictions, American International Group's chief executive Robert Benmosche has officially agreed to a $10.5 million non-compete contract, the company announced Tuesday.
It's unprecedented for the nation to be outraged about corporate pay, right? Not exactly: In the 1930s, as the Depression gripped the nation, furor about compensation rose to fever pitch, and Washington applied shears to salaries.
It's a tough time to be starting a career.
It's bonus time on Wall Street and pay czar Kenneth Feinberg is walking a thin line.
Despite all the talk about economic recovery, you're probably still anxious about next year's job market -- worried not necessarily about your position but maybe your spouse's or your adult kids' or your best pal's.
AIG Chief Executive Robert Benmosche told his staff on Wednesday that he is "frustrated" with ongoing discussions with the government about bonuses, but he will remain with the company.
U.S. workers are overpaid, relative to equally productive foreigners doing the same work. If the global economy is ever to get back into balance, that gap needs to be closed.
Bonuses at financial firms worldwide will increase by an average of 40% this year, according to an annual report released Monday.
When was the last time your employer gave you a raise because the company had a little windfall? Don't feel bad if your memory is drawing blanks.
Is the Fed about to hit the brakes on the Wall Street gravy train?
After balking at government imposed pay restrictions, American International Group's chief executive Robert Benmosche has officially agreed to a $10.5 million non-compete contract, the company announced Tuesday.
It's unprecedented for the nation to be outraged about corporate pay, right? Not exactly: In the 1930s, as the Depression gripped the nation, furor about compensation rose to fever pitch, and Washington applied shears to salaries.
It's a tough time to be starting a career.
It's bonus time on Wall Street and pay czar Kenneth Feinberg is walking a thin line.
Despite all the talk about economic recovery, you're probably still anxious about next year's job market -- worried not necessarily about your position but maybe your spouse's or your adult kids' or your best pal's.
AIG Chief Executive Robert Benmosche told his staff on Wednesday that he is "frustrated" with ongoing discussions with the government about bonuses, but he will remain with the company.
U.S. workers are overpaid, relative to equally productive foreigners doing the same work. If the global economy is ever to get back into balance, that gap needs to be closed.
Bonuses at financial firms worldwide will increase by an average of 40% this year, according to an annual report released Monday.
When was the last time your employer gave you a raise because the company had a little windfall? Don't feel bad if your memory is drawing blanks.
Is the Fed about to hit the brakes on the Wall Street gravy train?
The presidents of the nation's top private universities got 6.5% more in pay last year, with 23 taking home more than $1 million, according to a study published Monday.
What do you know? The suits at troubled finance firm GMAC must like working for less money. How else to explain that GMAC is reportedly trying to get a third helping of government rescue funds? GMAC is one of the seven firms that the Obama administration announced sweeping changes in executive compensation for last week.
Washington's so-called "pay czar" Kenneth Feinberg cautioned lawmakers against extending his authority to the hundreds of other companies that accepted government bailout money.
The next round of executive pay decisions for companies that have received substantial government bailout funds could have a more lasting impact on pay practices nationwide, the special master on pay for the bailout said Tuesday.
In the end, pay czar Kenneth Feinberg's hardest case was AIG.
Washington launched its biggest offensive yet against Wall Street pay practices Thursday, taking aim at everyone from senior executives to high-flying traders of complex securities.
The Obama administration's pay czar is imposing tough cuts on 175 big earners -- but many on Wall Street are still on track for a banner payday.
Even as the Obama administration is unveiling plans to impose unprecedented pay caps on top officials at the seven U.S. companies receiving the largest federal bailouts, the U.S. Supreme Court is preparing to hear a case that turns on whether to apply analogous pay caps on certain financial advisers.
The Obama administration will soon order the nation's biggest bailed-out companies to drastically cut the pay packages of 175 top executives, a senior administration official confirmed to CNN Wednesday.
President Obama's "pay czar" will soon decide whether top executives at firms that received the most assistance from the government during last year's financial crisis are making too much money.
The Goldman Sachs steamroller keeps chugging along.
Congress is resurfacing its outrage over AIG's bonuses after a report detailed the vast scope and scale of the troubled insurer's executive compensation plan.
The Treasury Department, after missing an opportunity to rein in controversial bonuses to AIG employees last year, is now pressing the bailed out insurer to reduce a $198 million bonus pool, according to an overseer's report released Tuesday.
AIG Chief Executive Robert Benmosche's $10.5 million annual pay package has been formally approved by Obama administration pay czar Kenneth Feinberg.
Ken Lewis doesn't have a golden parachute, but he's all set for a comfortable landing -- unlike his long-suffering shareholders.
Nonprofit CEOs didn't feel the economic pinch in 2008 despite charitable giving having declined for the first time since 1987.
With Wall Street continuing to recover, so are the prospects for this year's bonus season.
Back in April, William Stickney got some unwelcome news. His employer was cutting his salary by 10%.
Compensation for top executives at many of the nation's largest publicly traded firms was essentially unchanged last year, even as the stock market plummeted, according to a study released Thursday.
A handful of major corporations have agreed to change the way they pay their employees, as calls to reform executive compensation structures heat up.
The outrage over big bonuses paid to Merrill Lynch employees is quickly becoming less a scandal for Bank of America and more of another black eye for Wall Street's top cop in Washington.
A federal judge struck down a proposed settlement reached between Bank of America and federal regulators over outsized bonuses paid to Merrill Lynch employee.
This is the seventh installment in a series of health-care columns by Fortune's Shawn Tully.
Earlier this year, public outrage boiled over with news of eye-popping pay to top executives on Wall Street.
Finding work in this recession takes determination, perseverance and, most of all, sacrifice.
AIG's stock closed at $47.84 on Thursday. At the start of the month, shares were trading at a mere $13.14.
Not everyone is suited for every job. For example, I'm in awe at anyone who works as a restaurant server.
Bank of America defended the fairness of a proposed $33 million settlement it struck with federal regulators over the Merrill Lynch bonus scandal, according to a federal court filing submitted Monday.
Banks that received bailout funds said they are trying to comply with executive pay curbs imposed by the Treasury Department, but the firms are worried about changing rules and an inability to keep top talent, according to a report relesed Wednesday by a TARP overseer.
AIG's new boss will make an annual salary of $3 million and receive bonuses and stock options worth millions more, according to a company filing on Monday.
More employers are planning to reverse pay cuts and other employee cutbacks, another sign that the employment picture is improving, according to a survey released Thursday.
Just how much is a rainmaker at a bailed-out bank really worth? Or a senior executive at a recently bankrupt automaker for that matter?
Troubled insurer AIG did not pay $2.4 million in bonuses scheduled to be delivered to top executives on July 15, according to a Treasury official nominee.
The Securities and Exchange Commission filed charges Monday against Bank of America for misleading investors about billions of dollars in bonuses paid to top executives at Merrill Lynch following its purchase of the brokerage giant.
These days finding a job requires sacrifice -- something employers are taking full advantage of.
Even as top banks delivered abysmal performances last year, they still managed to pay out billions of dollars employee bonuses, according to a study published Thursday by New York Attorney General Andrew Cuomo.
It may not be long before shareholders have more control over how much money top executives across the country make.
Pay raises are expected to rebound next year after being severely stunted by the recession, a new survey showed Wednesday.
Goldman Sachs proved that it was well on its way towards making a full recovery from last fall's crisis, after its latest quarterly results shattered even the most bullish of expectations on Tuesday.
Bailed-out insurer AIG again found itself in the crosshairs of bonus rage on Friday over its plans to pay $2.4 million in executive bonuses next week.
Entering the third quarter, employers everywhere are still feeling the effects of the current economic climate.
Bailed out financial giant Citigroup said Wednesday it is going to the raise base salaries of its employees, although it is not planning to increase their total compensation.
The so-called brain drain that big banks have worried about ever since the government stepped in to bail out the financial sector appears to be well underway.
Dear Annie: I know this probably sounds nutty, with so many companies cutting pay or freezing pay in order to avoid layoffs (or, further layoffs), but I'm thinking of asking for a raise. First of all, my employer has not cut or frozen anyone's pay -- at least not to my knowledge. However, we have had layoffs here, so I'm now doing the work three people used to do.
The Obama administration moved forward Wednesday on curbing runaway corporate pay practices, proposing new legislation aimed at giving shareholders a greater voice on executive pay and appointing a new so-called "pay czar."
Shoot-from-the-hip legislators are getting what they asked for -- the slow death of the Wall Street bonus. But that's not necessarily a good thing. While bonuses became something of a dangerous entitlement over the past few fat years, the incentive-based pay schemes common to the financial industry had many virtues.
As a writer and an economics professor at Cornell University, Robert Frank has been trying for years to bridge the gap between the classroom and the real world. Though he has proved his command of the essentials of his profession - he wrote a textbook with Federal Reserve Board chief Ben Bernanke back in 2000 - his vision of economics is broader and more thought-provoking than most.
The furor over AIG's controversial bonuses is boiling over again.
A new State Department report says some local employees hired by U.S. embassies and other posts around the world are so poorly paid they have to cut back to one meal a day or send their children to peddle on the streets.
Chrysler Financial turned down additional government funding this month because executives at the financing arm of the troubled auto manufacturer could not agree to new government-mandated limits on executive pay, according to a source familiar with the matter.
I had the chance to sit with the new executive director of the NFL Players Association, DeMaurice Smith, for three hours in Washington last week. I liked him. He's personable, he listens, he makes good arguments ... and, more importantly, he's a huge football fan. He loves the game, and it's going to be tough for him to tear himself away from his beloved Redskins and become a fan of all 32 teams. But to me that's a good thing. He's excited about meeting the men he's watched on TV over the years and was tickled that Peyton Manning was trying to reach out to him last week to congratulate him on the new job.
As the economy melted down last year, so did CEO paychecks. The average compensation for 200 chief executives at America's largest public companies fell 5.1% last year to $10.8 million, according to a survey published Sunday by the New York Times and research firm Equilar. The decline marked the first time in five years that top executives' pay packages shrank compared to the year before.
The idea that anyone on Wall Street deserves anything but 40 lashes in the way of pay is a not-uncommon view these days. Speaking about some $165 million in bonuses AIG awarded to employees after the company received $170 billion in federal funding, Rep. Barney Frank, D-Mass., said it was "almost extortion, where they said, 'We know what you need to know and we will quit if you don't bribe us.' " The Street is in such dismal shape, why would anyone who still works there need a bonus to stay on board?
The officials managing the bailout of AIG, facing an onslaught of questions from angry lawmakers Tuesday, said the government had no choice but to effectively seize control of the troubled insurer last September and asked for more power to prevent a similar collapse in the future.
Legislation to impose a bonus tax -- thrown together in record time last week -- has hit a wall.
Treasury Secretary Timothy Geithner confirmed Thursday that the department did talk to Sen. Chris Dodd about a clause he put forth in the stimulus legislation that would have strictly limited executive bonuses.
The ex-CEO of the battered insurance and financial services company AIG said Wednesday the bonus plan for executives at his old firm was slipshod in recent years, with employees frequently leaving after receiving retention bonuses.
Insurance giant AIG will have to return to the Treasury Department the $165 million it just paid out in executive bonuses, Treasury Secretary Timothy Geithner said Tuesday in a letter to congressional leaders.
The fallout continued Tuesday over $165 million in bonus payments paid to executives by bailed-out insurer American International Group.
When Senator Chris Dodd, (D-Connecticut) crammed what he dubbed "tough new limits" on "lavish Wall Street bonuses" into the stimulus package, he may have created a bigger problem for the economy than the one he was trying to solve. The reason? His plan inadvertently rewards nonperformance and will drive talented financiers away from the companies that need them most.
Iraq's parliament has passed a $58.8 billion budget for 2009 after cutting $3.2 billion from government spending because of weak oil prices, a Iraqi lawmaker said.
At long last, angry shareholders may finally have their day.
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