Bankers to Bernanke: We need to pay stars big bucks!

The Federal Reserve should allow banks to pay their stars for "exceptional performance" so long as those employees also get hit in the wallet when their decisions tank, a group of bank CEOs told Fed Chairman Ben Bernanke and other governors at a recent meeting, according to msnbc.

The CEOs told the Fed there is a growing and unnecessary tension between pay practices that shareholders want and that the Fed considers acceptable, according a summary of the May 11 meeting posted on the Fed's website on Monday.

"It is commonly perceived that performance goals will be subject to supervisory criticism unless they are highly achievable and avoid rewarding exceptional performance," a memo from the CEOs to the Fed said.

"Shareholders, however, rightfully want to encourage exceptional effort and corresponding performance, and doing so should not be viewed as inconsistent with safety and soundness provided that employees also are exposed to significant downside risks should they seek to achieve above-average performance through imprudent or excessive risk-taking."

Find out more at http://bottomline.msnbc.msn.com/_news/2012/06/11/12169192-bankers-tell-fed-they-need-to-pay-the-exceptional-more?lite