Wednesday, September 30, 2009

Bank CEO salaries in US compared to Europe and Asia: The Movie "Corporation" by Michael Moore says it all!

Article on compensation for our bank CEO's, which by the way many had to be bailed out, shows huge differences that will amaze you. Here are some excerpts from a Reuters story:

"US Bank CEO Pay Dwarfs Rest of the World: Study
Published: Wednesday, 23 Sep 2009 | 10:07 AM ET
By: Reuters

You wouldn't know it by his pay stubs, but Jiang Jianqing heads the world's largest bank.

Jiang, chairman of Industrial and Commercial Bank of China, made just $234,700 in 2008. That's less than 2 percent of the $19.6 million awarded to Jamie Dimon, chief executive of the world's fourth-largest bank, JPMorgan Chase.

The contrast illustrates the massive differences in pay among the CEOs of the world's top banks. The compensation of the CEOs of the largest U.S. banks towers above what's paid to banking chiefs in other parts of the world, according to a Reuters analysis of pay at the 18 biggest banks by market value.

Excessive compensation at banks is expected to be discussed this week when the Group of 20 nations meets in Pittsburgh. But consensus on the issue remains a distant hope as there continue to be vast differences in how bankers are paid, from the CEO on down.

The United States is home to four of the nine largest banks in the world — JPMorgan, Bank of America, Wells Fargo and Citigroup. It is also home to four of the six most handsomely rewarded bank CEOs.

'The U.S. executive pay levels have always dwarfed pay for companies elsewhere in the world," said Sarah Anderson, a fellow with the Institute for Policy Studies, which is critical of Wall Street, and co-author of the recent study 'America's Bailout Barons.

'They have claimed it is impossible to recruit people without paying such compensation. Yet, if you look at the pay levels in Europe and in a lot of Asian countries, somehow they manage to find people who can run major global firms while making a fraction of what they make in the U.S.,' she said."

This is just one example of the greed I have talked about in a previous Blog posting, "The greed of Wall St. and the Banks have put US second to China". You wonder where your healthcare dollars go? They go to the salaries, bonuses and stock Options the Healthcare Insurance company CEO's get from what you pay for Health insurance. Most are just greedy. Ever wonder why the "Generation X" is always focused on me, me, me and are spoiled? They learned it from their rich parents who gave them everything they ever wanted, so that now they feel entitled. Ever wonder why people have spent so much beyond their means for the past 25-30 years? Blame the corporations and their advertising, which says you can have it all. And then you must borrow on Credit cards you can't pay back, to have it all.

If you want to see a better story about this. than I can write here, be sure to see the new Michael Moore film, "Corporations" coming out across the country on Friday, Oct. 2nd. It is must see entertainment, which is very real and will shock you to the core. The real question is this, will you do anything about it after seeing the movie? Will you become more frugal, live within your means and teach your children what the word "No" means?

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Blogger Rolfe Bautista said...

It is a shame that this is true. It is the common people that suffer because of this.

5:55 AM  
Blogger TST said...

Hi, it really is such an obvious point staring us in the face that in Asia and Europe they seem to find perfectly talented executives for a fraction of the price. We know what the problem is here in the states - the boardrooms are not doing their jobs, and half of our legislators are in the pockets of the banks. Just saw MM's movie - very frightening stuff. Please do check out my nascent blog and leave a suggestion as to how we can deal with what is a full on breakdown in both our financial and legislative systems.

6:02 PM  
Blogger TST said...


If you have a list of other blog sites that deal with this issue in particular, please let me know. Many thanks. TST

9:50 AM  

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