Patt Morrison

<em>Patt Morrison</em> is known for its innovative discussions of local politics and culture, as well as its presentation of the effects of national and world news on Southern California. Hosted by

Wall Street CEO pay rises 20 percent in 2011, despite losses in corporate value

by Patt Morrison

39623 full
Lloyd Blankfein, Chairman and CEO, Goldman Sachs Group, Inc. speaks at Intrepid Sea-Air-Space Museum on May 7, 2012 in New York City. Craig Barritt/Getty Images for The Robin Hood

In the aftermath of the financial crisis, the subsequent Occupy movement and the protests against the 1 percent, you might think that financial corporations would rein in the multi-million dollar salaries paid to their CEOs.

Instead, compensation to the best-paid CEOs at the largest U.S.-based financial companies collectively rose by an average of 20.4 percent in 2011, according to a new report from Bloomberg Markets magazine. This rise is even more surprising in light of the fact that 33 of the 50 biggest financial companies had negative share returns in their 2011 fiscal years. High-level investment managers maintain that many of the CEOs of companies with underwhelming stock performance are overpaid and warn that the controversy over executive pay in the financial industry will not be resolved until shareholders hold executives fully accountable for their under-performance.


How should we determine what compensation is reasonable for CEOs? How can shareholders or the U.S. Securities and Exchange Commission (SEC) limit compensation increases paid to executives when their respective companies lose value?


David Lewin, author and Neil H. Jacoby chair in Management at UCLA’s Anderson School of Business

Jeanne Branthover, managing director of Boyden Global Executive Search; head of the Global Financial Services Practice at Boyden. Founded in 1946, Boyden specializes in high level executive search across a broad spectrum of industries

blog comments powered by Disqus

Enjoy Patt Morrison? Try KPCC’s other programs.

What's popular now on KPCC