Friday, December 19, 2008

A Unique type of Bonus

With all the uproar about compensation on wall street here is a unique way to pay bonuses to senior executives. Credit Suisse one of the hardest hit in the credit crisis has decieded to pay bonuses to about 2000 senior employees in the form of "illiquid shares" which "are linked to the performance of a pool of illiquid assets that were originated in the investment banking division," Credit Suisse said. The division was responsible for most of the bad subprime and other assets taken on by the bank in the leadup to the global financial crisis. Hey they made the mess now let them deal with it, or at least get paid based on value of those assets.

There has been alot of talk about how senior executives do not deserve bonuses this year due to the terrible performances of the industry. I certainly agree that if you do not perform, you should not get paid. This is a good way of compensating the people who helped create the problem. Basically no thing now but something down the road if things turn around. Great Idea.

CLICK HERE to read the entire story from AOL



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