AWARDS, NOT BONUSES….What do two failed investment banks that have received $60 billion in federal bailout cash do when they merge? Pay their people more! Sam Stein reports:
The soon-to-be-merged financial giants — Morgan Stanley and Citigroup’s Smith Barney — announced the payments during an internal conference call last week, but warned advisers against describing them in terms that would cause PR headaches.
“There will be a retention award. Please do not call it a bonus,” said James Gorman, co-president of Morgan Stanley. “It is not a bonus. It is an award. And it recognizes the importance of keeping our team in place as we go through this integration.”
Yeah, there’s nothing more important than keeping all these folks in place. There are so many other lucrative opportunities for them in the rest of the financial industry, after all. Yeesh.