Bonus clawbacks and fair play

May 15, 2012 | By | Reply More

Businessweek is reporting that JP Morgan is considering moving to “clawback” bonuses which had been awarded to executives and others responsible for Morgan’s recent $2 BILLION dollar loss.:

The lender can cancel stock awards or demand they be repaid if an employee “engages in conduct that causes material financial or reputational harm,” JPMorgan said in its annual proxy statement. The company will claw back pay if it’s appropriate, said one of the executives, who asked not to be identified because no decisions have been made.

But wait!  These big Wall Street firms told us that bonuses were untouchable after they blew up the economy in 2008.  Am I the only one that remembers that?  There was all sorts of bullshit about how these employees were simply too valuable, that if they didn’t get their massive bonuses they would leave to seek other employment, that contracts and bonus structures were sacrosanct and untouchable (untouchability does not extend to unions and teachers, by the way).  Oh, but I guess that was when taxpayers were paying the bonuses.  Now that JP Morgan took a big hit in their own shorts, they want their money back.  Funny how things change.

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Category: Current Events, Free Market, hypocrisy

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is a full-time wage slave and part-time philosopher, writing and living just outside Omaha with his lovely wife and two feline roommates.

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