After AIG: New Rules for Financial Sector Compensation? March 27, 2009

Hosted by: Essential Information and the Consumer Education Foundation

The AIG bonus controversy has intensified the spotlight on compensation policy for financial firms. In recent years, Wall Street bonuses have been 10 or 20 times many employees' base salary. Top players in the financial markets have taken home nine-digit and sometimes even ten-digit compensation packages.

Are these compensation packages merited? Do they provide incentives for executives, traders and others to engage in excessively risky and short-term-oriented behavior? Should Wall Street bailout monies require limits on employee compensation? Is there a public interest in limiting financial sector employee compensation or regulating compensation incentives? Are there downsides to such limits or regulation?

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Jennifer Wedekind, jennifer@essentialinformation.org or 202-387-8030

Hosted by Essential Information and the Consumer Education Foundation