Waxman Has a Few Questions for Bank CEO’s
Jul 31, 202042.6K Shares1.7M Views
Rep. Henry Waxman (D-Calif.) is again focusing on the hard-to-fathom salaries of financial executives, writing to the CEO’s of the nine banksthat were partly nationalized as part of the Treasury Dept.’s $700- billion rescue plan.
Waxman, chair of the House oversight committee, points out that Treasury spent a combined $121 billion to buttress these banks, while the banks have spent $108 billion in the first nine months of 2008 on employee compensation and bonuses.
Questions to the banks include:
What is their average compensation per employee? How and why have these numbers changed in the past three years? How many employees are paid more than $500,000? Who are the 10 highest-paid employees and how much do they make? What are your policies toward the granting of bonuses?
CEO salaries has been a pet issue for Waxmansince taking over as oversight chairman in 2007. He has already used the financial crisis to expose sweetheart deals at bankrupt Lehman Bros. and bailed out American International Group. The committee continues to investigatelavish gifts that AIG executives received and resort vacations they enjoyed after the government rescued the company last month with an $85-billion loan.
Waxman gave the banks until Nov. 10 to detail their spending habits. The nine companies are: Citigroup, Bank of America, Bank of New York Mellon, Goldman Sachs, JP Morgan Chase & Co., Merrill Lynch, Morgan Stanley, State Street Corporation and Wells Fargo.
Hajra Shannon
Reviewer
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