Before anyone sheds a tear, let’s remember that the pampered bunch on Wall Street already make considerably more than any other sector out there. Even with reduced annual compensation, the Wall Street crowd will still continue to live a comfortable life, which is what their obstruction to reform has been all about. There has been no interest at all by Wall Street to show any interest in protecting the American system, except of course when they were all failing and screaming for government handouts to stay alive.
The recent Dodd-Frank reform was weak and failed to go far enough but even following its implementation, Wall Street is already seeing fewer profits. Republicans and Wall Street may view this as socialism holding down business, but this is nothing more than a convenient memory of recent history. Wall Street somehow envisions itself as a buch of entrepreneurs, thus the high rewards but that couldn’t be any farther from the truth. The only risk involved so far has been risking taxpayer money, knowing that there would be a bailout without claw backs for bad business.
This is a start, but Wall Street still needs to come down to planet earth. Until we get serious reform that ends the excessive payouts for excessive risk, we will never be too far away from the next costly crash.
“Wall Street is in the process of re-evaluating what each seat is worth and having been in one of those seats it’s tough,” said Mr. Driscoll, now a professor at Adelphi University’s business school. “Right or not, compensation is how you measure yourself and your value. You may still be making a lot, but it is a lot less than what you were making and that is what matters.”
While overall compensation may be down, it is still out of sight compared with what most Americans make. Wall Street workers make a base salary of $100,000 to $1 million for top executives, but most of their pay comes at the end of the year in a big one-time bonus.