Citi, Morgan Stanley look to sidestep bonus caps: report

[kpete]

Source: Reuters

(Reuters) - Anticipating restrictions on bonuses, officials at Citigroup Inc and Morgan Stanley are exploring ways to sidestep tough new federal caps on compensation, the Wall Street Journal said.

Executives at these banks and other financial institutions that received government aid are discussing increasing base salaries for some executives and other top-producing employees, the paper said, citing people familiar with the situation.

The discussions are at an early stage, partly because the government has not yet issued specific rules on the bonus payments that will be allowed at companies that received aid under the government's Troubled Asset Relief Program, the paper said.

The report comes on the heels of widespread outrage that insurer AIG, kept alive on a government bailout of up to $180 billion, was paying its employees bonuses of $165 million.

Read more: http://www.reuters.com/article/GCA-CreditCrisis/idUSTRE52G0X420090317

[hobbit709]

1. Put the bastards on minimum wage.

Give them an idea how the real world lives.

[rocktivity]

2. Just levy 100% tax on ANY kind of excess compesation

beyond the $500K cap Obama has set. Take it or quit.

:headbang:
rocktivity

[Jackpine Radical]

3. But they need to retain their top-flight talent.

You think just anybody can steer a giant corporation into total disaster? It takes nerves of steel, I tell ya.

[DCKit]

4. "...executives and other top-producing employees..."

Bwahahahahahahahahaha!!!!!

Thanks for the early morning laugh.