In a late addition to the stimulus bill, Congress placed tight restrictions on compensation arrangements in all financial firms that have or will receive funds from the federal government's Troubled Asset Relief Program (TARP).
This is yet another nail in the 'deregulated capitalism' coffin: now, fairly restrictive compensation controls will govern executive behavior. The long term effect will be profound - people are attracted to Wall Street for the prospect of exponential riches -- $500K/year doesn't warrant the blood, sweat, and tears. Expect a reversal in flow of the engineers, doctors, every-day-man joining the financial services industry.
Gordon Gecko would be turning over in his grave.
Aveek Guha
President, MBA Day Camp
www.mbadaycamp.com
This is yet another nail in the 'deregulated capitalism' coffin: now, fairly restrictive compensation controls will govern executive behavior. The long term effect will be profound - people are attracted to Wall Street for the prospect of exponential riches -- $500K/year doesn't warrant the blood, sweat, and tears. Expect a reversal in flow of the engineers, doctors, every-day-man joining the financial services industry.
Gordon Gecko would be turning over in his grave.
Aveek Guha
President, MBA Day Camp
www.mbadaycamp.com
President, www.mbadaycamp.com
