Cuts in the paydays of large banks’ chief executives are expected to come up for shareholder votes throughout the year. This follows drops this year in which banking stock shares were often in the tank compared to the broader stock markets.
“Giant firms are expected to cut executive pay by some 30% from 2010 levels,” consultants predicted to Brett Philbin writing in the Wall Street Journal.
With public pressure popping up from the 2012 elections, from the Occupy movement and from the new buzzwords of 1-percenters and 99-percenters, investors starting to stand up for reasonable pay. They are demanding compensation be in relationship to company profits and stock values.
“Some executives have already made concessions,” according to Philbin. Chairman and CEO Richard Handler of Jefferies Group said he would forego a bonus in 2012. His $39 million bonus made him one of the highest paid banking executives in 2010.