Opening Bell: 10.23.09
Wall Street Reacts With Skepticism, Anger on Moves to Reduce Executive Pay (Bloomberg)
The pay cuts are "sheer stupidity," said Kenneth Langone, co-founder of Home Depot Inc. and a former New York Stock Exchange board member. "The taxpayers have an enormous financial risk in these companies, and very simply stated, I want the best person. If I needed neurosurgery, I would want the finest doctor I could get, no matter what I had to pay for it."
GM CEO to get raise in compensation (Reuters)
Last year's comp was $1.71 million, this year will be $5.45 million.
CIT Reaches Tentative Deal with Goldman (CNBC)
The new agreement calls for Goldman to reduce the loan to just over $2 billion, people said. CIT in turn would pay Goldman about $300 million if it files for bankruptcy.
Top employees leave financial firms ahead of pay cuts (WaPo)
So suck it, Feinberg!
Fed Hits Banks With Sweeping Limits Pay (WSJ)
While the Fed didn't propose pay caps, it said it will review compensation policies at "28 large, complex banking organizations," which it didn't identify. It will be a "horizontal review" that in effect compares them to one another. The Fed also proposed that pay of traders and other employees be linked to the risks taken to achieve returns. So if two people generate $1 million in revenue each, one who took more chances could be paid less.
Man pleads guilty to DWI in motorized La-Z-Boy (AP)
Let this be a lesson to you all.