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Wall Street Compensation–’No Clear Rhyme or Reason’

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From Wall Street Journal Blog: http://blogs.wsj.com/deals/2009/07/30/wall-street-compensation-no-clear-rhyme-or-reason/

By STEPHEN GROCER
Published: July 30, 2009

Andrew Cuomo, New York’s Attorney General, just released a report breaking down compensation at the nine original TARP recipients.
The report is part of Cuomo’s investigation into the causes of the financial crisis. Not surprisingly, that investigation led to Cuomo’s office examining the compensation practices in the U.S. banking system. And the investigation comes to a scathing conclusion:

“There is no clear rhyme or reason to the way banks compensate and reward their employees. In many ways, the past three years have provided a virtual laboratory in which to test the hypothesis that compensation in the financial industry was performance-based. But even a cursory examination of the data suggests that in these challenging economic times, compensation for bank employees has become unmoored from the banks’ financial performance.”

Below is a table of how many employees at each of the nine firms received bonus payments in excess of $3 million, $2 million and $1 million. Click here to see the full report. And click on the following names to see the compensation summaries for the individual banks: Bank of America, Bank of New York Mellon, Citigroup, Goldman Sachs Group, J.P. Morgan Chase, Merrill Lynch, Morgan Stanley, State Street, andWells Fargo.

Bank    Greater Than $3 Million    Greater Than $2 Million    Greater Than $1 Million   
Bank of America 28 65 172
Bank of New York Mellon 12 22 74
Citigroup 124 176 738
Goldman Sachs 212 391 953
J.P. Morgan Chase 200* 1626
Merrill Lynch 149 696
Morgan Stanley 101 189 428
State Street 3 8 44
Wells Fargo 7 22 62

*Over 200 employees at J.P. Morgan Chase received bonuses of $3 million or more.

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