These guys are savvy…

[Disintermedia8]

I know these guys … I don’t begrudge them their compensation.

Quick: Who said it about whom? If you guessed the President said it about Jamie Dimon and Lloyd Blankfein you would be correct. (I’m sure if you forced me to source these statements I would be able).

But in a just released study, Bank Executive Compensation And Capital Requirements Reform conducted by Sanjai Bhagat, University of Colorado at Boulder and Brian Bolton, University of New Hampshire, brings into question whether “these guys are savvy businessmen”. In summary:

incentives generated by executive compensation programs led to excessive risk-taking by banks leading to the current financial crisis



http://disintermedia8.wordpress.com/2011/02/10/these-guys-are-savvy/

[shraby]

1. Here, you need links when declaring something as true.

[Disintermedia8]

2. Indeed

http://wonkroom.thinkprogress.org/2010/02/10/paulson-obama-bonuses/
QUESTION: Let’s talk bonuses for a minute: Lloyd Blankfein, $9 million; Jamie Dimon, $17 million. Now, granted, those were in stock and less than what some had expected. But are those numbers okay?

THE PRESIDENT: Well, look, first of all, I know both those guys. They’re very savvy businessmen. And I, like most of the American people, don’t begrudge people success or wealth. That’s part of the free market system. I do think that the compensation packages that we’ve seen over the last decade at least have not matched up always to performance.