Such as Wall Street bonuses. The Guaranteed Bonuses are back. You know the bonuses that traders and other get regardless of performance.
Kenneth Feinberg, Obama Administration's "Pay Czar" is supposedly on the case. He is reviewing the compensation plans of seven companies that received two or more federal bailouts. Good luck with that.
Here is an idea: Ban the Practice of Guaranteed Bonuses. Financial conglomerates operate in a regulated industry (despite the incompetence/ignorance of the regulators). If we are going to do nothing to stop "too big to fail" financial conglomerates from getting even bigger than taxpayers need protections and banning the practice of guaranteed bonuses is one of them.
This what an a pay consultant said about the practice:
“Is Wall Street again going to overpromise, and then when the market turns down, we’ll have another set of pay problems?” asked Alan Johnson, a pay consultant who specializes in financial services.
What is happening right now is that Wall Street firms are fighting over "talent". They are trying to attract the best "talent" especially from weaker firms. Now, these firms have already shown a weaken for excesses as in the case of the mortgage craze there is nothing stopping these same firms from reverting back to their excessive ways when it comes to Guaranteed Bonuses.
H.R. 3269 ("Say on Pay"), which recently passed the House, defers to regulators in deciding whether Guaranteed Bonuses are bad. The Senate has not taken up H.R. 3269 maybe just maybe the Senate will break free from their masters on Wall Street and EXPLICITLY ban Guaranteed Bonuses. I am not holding my breath.