Reuters reports that US pay czar Ken Feinberg has admitted that he is 'very concerned' that his pay cuts will result in talent leaving organisations which are relying on exceptional US taxpayer support. He has said, however, that he may consider sanctioning new hires into these organisations (which include Citi, Bank of America and AIG, if the firms are hiring for critical roles, and individuals come aboard on flat compensation packages.
And Bloomberg reports that Warren Buffett has said that the CEOs of companies that are forced to go to the US taxpayer for assistance should be made to suffer even more sacrifice. Speaking at Columbia University earlier this week, Buffett said: 'More sticks are called for. There should be more downside to the head of any institution that has to go to the federal government to be saved'. Come on, Warren, the guys that end up going to be bailed out are rarely the CEOs who got the companies into the mess in the first place. And the ones that are, already end up losing their jobs, a large part of their net worth and any future career prospects. What to you want ? A public flogging ?
The news agency also reports that there is at least one voice celebrating big bonus bankers. David Saltzman, executive director of the Robin Hood Foundation, told Bloomberg News: 'Let me be emphatic about that one. Hell, yeah. It's clear that New York City is better off in all sorts of ways if there's a healthy financial community'.
Finally, The Daily Telegraph reports that hedge funds and private equity professionals are pulling out all the stops to try to prevent their firms being included in an EU compensation directive which will result in up to 60% of annual pay being granted in deferred equity.