Bonus Watch: Bill Dudley Wouldn’t Let You Spend It All In One Place


Unless that place is at the SEC cashier’s office, when your (probably former) employers are paying a fine that your actions helped incur. Otherwise, start planning to buy yourself something nice circa 2025.

New York Federal Reserve Bank President William Dudley said banks should move toward paying employees in debt securities for their annual incentive pay, rather than in equity….

"Assume instead that a sizeable portion of the fine is now paid for out of the firm’s deferred debt compensation, with only the remaining balance paid for by shareholders," Dudley said. In the event of a fine, "senior management and the material risk-takers would forfeit their performance bond," he said.

Banks should defer bonuses 10 years, tap them for fines: Fed official [Reuters]


By United States Treasury (http://www.federalreserve.gov/bios/pres02.htm) [Public domain], via Wikimedia Commons

Bill Dudley: Mistakes Were Made, All Around

The New York Fed president engages in some serious self-criticism before unloading on Tim Sloan.