Monday, February 7, 2011

Various resources: Effects of Executive Compensation

Back in 1997:

Note especially examples of subprime mortgage securitization.

Gretchen Morgenson today:

Nothing special here folks, now move on along, nothing to look at, move on along:

From Wikipedia:

The Financial Crisis has had a relatively small net effect on executive pay. According to the independent research firm Equilar, median S&P 500 CEO compensation fell significantly for the first time since 2002. From 2007 to 2008, median total compensation declined by 7.5 percent.[34] A sharp decline in bonus payouts contributed most to declines in total pay, with median annual bonus payouts for S&P 500 CEOs dropping to $1.2 million in 2008, down 24.5 percent from the 2007 median of $1.6 million. Additionally, 20.6 percent of CEOs received no bonus payout at all for 2008.[34]
On the other hand, equity compensation changed little from 2007 to 2008, despite the market turmoil. The median value of option awards and stock awards rose by 3.5 percent and 1.4 percent, respectively. Options maintained its place as the most prevalent equity award vehicle, with 72.2 percent of CEOs receiving option awards. In 2008, nearly two-thirds of total CEO compensation was delivered in the form of stock or options.[34]

I'm just playing with this idea of excerpting books I am reading:
Excerpt from The Big Short
You can back up and go forward a few pages. Back up to at least Green Tree. Steve Eisman is the subject of this book who actually looked into the Prime Mortgage Securitization problem before it became the Financial Crises.

Steve Eisman today:
now trying to get us to see another problem that crops up just at the right time to make money off of the poor, this time the out of work poor and ignorant, their unemployed status caused by earlier monemakers taking advantage of the poor and ignorant with the subprime loans.