Comp Change Means Mgmt Change on Wall Street

500k and restricted stock that vests only when the government has been repaid.  Wow.

My predictions:

1.  Goodbye to  Wall Street Executive who can afford to retire.  It will not be fun or rewarding and they will reinvent or play golf.

2.  Young Guns with lots of energy and significantly less experience will rise to prominence.

3.  Clever lawyers will design workarounds to increase compensation for executives.

4.  Congress will look the other way if economy recovers

5.  Wall Street Executives will  rally around the next Republican presidential candidate.  This will blunt some of Obama’s fundraising prowess in the next cycle.

6.  Obama will need 8+ years to break the cycle of avarice and entitlement that has dominated Wall Street since the Reagan Era.  Any economic recovery will foster aggressive political attacks on the severity of this presidential change.  This could lead to a new era in class warfare.


2 Responses

  1. I believe the salary cap will be removed as soon as the economy recovers. This cap is true only for companies that took bailout money. So, that’s a good incentive for businesses not to go bankrupt or take bailout money.

  2. Predictions 2, 3 and 5 are right on. We could use some class consciousness as that Wall St crowd–you’re right to use entitlement and greed– are truly the malefactors of great wealth, self-styled masters of the universe who are economic royalists.
    I just saw Obama speak to the House Democrats at a Williamsburg retreat–benefits of C-Span– inspirational and had them eating out of his hand while he can deal one-on-one with senate Republicans and bring Reform Jews together with Evangelicals and Catholics on his faith based initiatives.
    However Congress screws it up Obama’s Executive Orders and Actions are A triple plus.

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