Let's not even bother rolling out the "so they can keep good talent" argument because that's nonsense. These are the same idiots who got the world into this recession. There can be absolutely no justification for paying bonuses at a time like this. So will anyone decide to take a hard line against this or will the corporatist machinery in Washington roll over, as they tend to do?
The announcement Friday by Citi, which remains weaker than most of the large American banks two years after the meltdown, raised questions among experts on corporate governance.
By paying the raises in company stock, not cash, Citi has decided to follow previously issued guidelines that limited salaries to $500,000 for the top 25 executives at financial institutions still receiving large amounts of federal help.
"The question is do they deserve higher salaries, and are they evading rules to avoid losing talent?" asked Charles Elson, director of the Weinberg Center for corporate governance at the University of Delaware.
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