Sure, everybody knows pay is down on Wall Street. But according to the Wall St Journal the changing nature of compensation means today's payouts could yet haunt big firms if financial markets don't snap out of their funk.
Since the financial crisis, banks have lessened short-term incentives. Base salaries have risen, while bonuses have fallen. And a bigger portion of incentive compensation is now paid in stock that typically vests over three years.
While positive for investors, it poses new risks. Higher base salaries mean firms have less flexibility on pay. And by deferring more bonus pay, usually with restricted stock units that are charged over several years…
Find out more at http://online.wsj.com/article/SB10001424052970203750404577173202379152384.html?mod=markets_newsreel
No comments:
Post a Comment