Sunday, January 10, 2010

There is a limit to what PR can do for you

Banks Prepare for Bigger Bonuses, and Public’s Wrath
Those worries aside, few banks are taking immediate steps to reduce bonuses substantially. Instead, Wall Street is confronting a dilemma of riches: How to wrap its eye-popping paychecks in a mantle of moderation. Because of the potential blowback, some major banks are adjusting their pay practices, paring or even eliminating some cash bonuses in favor of stock awards and reducing the portion of their revenue earmarked for pay.

Some bank executives contend that financial institutions are beginning to recognize that they must recalibrate pay for a post-bailout world.

Of course we are not really in a post bail out world, otherwise Congress would not have prepared the ground for an additional $4 trillion bail out.

Angry citizens are already moving their money. Things can only get worse if banks continue to award outrageous bonuses to management so out of control that they require multiple trillion dollar bail outs.

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