BU Now » pay czar

Pay Czar eyes TARP firms’ pay

Dick Taffe — Tue, 23 Mar 2010 15:22:44 +0000

U.S. “Pay Czar” Ken Feinberg is writing all 419 firms that took taxpayer bailout money — not just the big seven taking TARP bucks — seeking to review their executive compensation, and maybe asking for some bucks back. Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law, says the deep review is appropriate and fair.

“Whether or not his legal mandate extends to the particulars of the grants made, his capacity to ‘name and shame’ should be exercised to the fullest in any instances where executives were rewarded for the very acts that endangered their companies.”

Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu

Government hits bank pay

Dick Taffe — Thu, 22 Oct 2009 21:29:26 +0000

In unprecedented moves, President Obama’s “pay czar” has put restrictions on compensation for top earners at the 7 biggest recipients of taxpayer bailout funds, while the Federal Reserve issued new guidelines to restrict pay practices at all banks to prevent excessive risk taking. School of Management Professor James Post, an expert on corporate governance and business ethics, says the times are a-changin’.

“We are in a new era of financial reform and it’s clear that Wall Street’s ‘heads I win, tails I don’t lose’ mindset is going to be challenged by the White House, the pay czar, and ordinary Americans.”

Contact James Post, 617-353-4162, jepost@bu.edu

Bailed-out Citi raising salaries

Dick Taffe — Wed, 24 Jun 2009 13:46:59 +0000

Coping with a government bailout/buy-in and a share price down 84 percent from last year, Citigroup reportedly intends to raise base salaries as much as 50 percent to offset smaller annual bonuses. School of Management Professor Fred Foulkes, director of the Human Resources Policy Institute, can discuss how this might go over with the Obama administration’s new “pay czar.”

Contact Fred Foulkes, 617-353-4281, ffoulkes@bu.edu

Salary caps nixed for bailed-out firms

Dick Taffe — Wed, 10 Jun 2009 14:21:31 +0000

Reports say plans to cap salaries at firms getting bailout money is being nixed by the Obama administration, which will leave it to Congress to limit bonuses. But the White House will name a “pay czar” to monitor bailed-out companies and will still push to revamp compensation practices in the financial industry. School of Management Professor Fred Foulkes, director of the Human Resources Policy Institute, can discuss trends in executive compensation.

Contact Fred Foulkes, 617-353-4281, ffoulkes@bu.edu