Posts filed under “Digital Media”

TARP Recipients and their Bonuses

These are really three different issues: 1) The CEO compensation; 2) Commission/P&L bonuses of profitable employees; 3) Misaligned compensation packages of the CDO/mortgage-backed buying managers.

The first one is a symbolic issue (and is irrelevant IMO) and the second one is perfectly appropriate — its the 3rd one that has become so problematic.

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2007senior-officer bonuses*/ total bonus pools**
Bailout money
2008

Bonus Pools

Merrill Lynch
$85M/$9.5B
$10B
Reportedly, in December, just before Bank of America took over, John Thain quietly awarded $3 to $4 billion in bonuses, a month earlier than was customary.
Bank of America
$36M/$11.3B
$15B
The company granted 2008 retention bonuses to 6,200 Merrill brokers, and C.E.O. Ken Lewis declined to answer a question about this year’s bonuses at a shareholder meeting in December.
Goldman Sachs
$313M/$12.1B
$10B
Average compensation is reportedly down 45 percent in 2008 but will actually be a greater share of revenues than in 2007.
Morgan Stanley
$64M/$9.9B
$10B
The firm’s 2008 bonus pool is down 50 percent but is still estimated at $5 billion.
Citigroup
$54M/$20.7B
$45B
The ratio of compensation to revenues is reportedly not remarkably different for 2008.
Wells Fargo
$40M/$8B
$25B
C.E.O. John Stumpf and top executives have not said they will forgo their 2008 bonuses as of mid-January.
J. P. Morgan Chase
$91M/$13.6B
$25B
While net income was down 64 percent in 2008, bonuses are reported to be down only 30 to 50 percent.
Total
$683M/$85.1B
$140B
*Total of top five bonus packages (including stocks) received by highest-ranking officers.

**Estimated as 60 percent of compensation where exact figures are not available.

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Source:
Bonus Babies: The Big Tarp Recipients and their Booty
Christopher Bateman
Vanity Fair, February 2, 2009, 10:00 AM

http://www.vanityfair.com/online/politics/2009/02/bonus-babies-the-big-tarp-recipients-and-their-booty.html

Wall Street’s $18.4 Billion Bonus
Michael Shnayerson
Vanity Fair, March 2009

http://www.vanityfair.com/politics/features/2009/03/wall-street-bonuses200903

Category: Bailouts, Credit, Digital Media

Executive Pay & Perks

Nice pair of tables from the NYT: > Sources: In Curbing Pay, Obama Seeks to Alter Corporate Culture STEPHEN LABATON and VIKAS BAJAJ NYT, February 4, 2009 http://www.nytimes.com/2009/02/05/us/politics/05pay.html Scrutiny of Bankers’ Perks Will Grow, Too ERIC DASH NYT, February 4, 2009 http://www.nytimes.com/2009/02/05/business/05perks.html

Category: Data Analysis, Digital Media, Wages & Income

Madoff 13,500 Client List

The following is the Madoff client list — released by the bankruptcy court — 160 pages, 13,500 clients. Madoff Client List Publish at Scribd or explore others: Court Filings Business & Legal madoff customers

Category: Digital Media, Legal

January Car Sales

> Sources: Auto Sales Start 2009 at an Abysmal Pace NICK BUNKLEY NYT, February 3, 2009 http://www.nytimes.com/2009/02/04/business/04auto.html Detroit Reels as Auto Sales Skid JOHN D. STOLL and ALEX P. KELLOGG WSJ, FEBRUARY 4, 2009, 6:02 A.M. ET http://online.wsj.com/article/SB123367018137943377.html

Category: Consumer Spending, Digital Media, Economy

Comparison of Bad Bank Structures

We noted the “Goldman” plan yesterday. Here’s an interesting chart from page 5 of that proposal:

Category: Bailouts, Digital Media

Worst January Ever

> Source: Stock Markets Post Their Worst January Ever JACK HEALY NYT, February 2, 2009 http://www.nytimes.com/2009/02/02/business/economy/02markets.html

Category: Digital Media, Markets, Trading

Cell Phone Spending Passes Residential Phone Services

I find this data point from the BLS rather intriguing: In 2001, the ratio of spending on residential phone services to spending on cellular phone services was greater than 3 to 1. In 2007, cellular phone expenditures accounted for 55 percent of total telephone expenditures compared to 43 percent for residential phone expenditures. Data from…Read More

Category: Digital Media, Markets, Technology

ISM Manufacturing for January Bounces Off Lows

Peter Boockvar writes: The Jan ISM mfr’g # surprised to the upside at 35.6 vs forecasts of 32.5 and is up from a revised 32.9 in Dec which was the lowest since 1980. New Orders were a main contributor as it rose 10 pts from its extremely depressed reading of 23.1 in Dec. Backlogs also…Read More

Category: Digital Media, Economy

Pessimism in the Corner Office

via NYT > Source: A Rise in Pessimism in the Corner Office FLOYD NORRIS NYT, January 30, 2009 http://www.nytimes.com/2009/01/31/business/economy/31charts.html

Category: Corporate Management, Digital Media, Markets, Psychology

Samtron Imperius

Category: Digital Media, Humor