An example of "regime uncertainty" is the AIG bonus situation that's in the news today.
AIG has multiple divisions. Many folks in many of these divisions (a) have contracts specifying that they get 90% of their annual compensation in a lump sum known as a bonus; (b) did a great job over the past year in areas of business entirely unrelated to CDOs and other issues.
...and now we've got a Republican senator saying that these people should commit suicide, and we've got a Democratic president and a Democratic senator saying that these workers will either have to give their salaries back or they'll be slapped with after-the-fact 100% tax rates.
In a political environment like this, I'd suggest that a lot of folks who can deliver massive amounts of value would be quite leery of signing up for a new job with variable, results-based compensation.
> we've got a Democratic president and a Democratic senator saying that these workers will either have to give their salaries back or they'll be slapped with after-the-fact 100% tax rates.
Don't forget the recently passed legislation exempting these bonuses (contracts signed before Feb last year) from the executive pay limits. Said legislation was voted for unanimously by Dem senators, nearly unanimously by Dem house members, and signed by Obama.
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An example of "regime uncertainty" is the AIG bonus situation that's in the news today.
AIG has multiple divisions. Many folks in many of these divisions (a) have contracts specifying that they get 90% of their annual compensation in a lump sum known as a bonus; (b) did a great job over the past year in areas of business entirely unrelated to CDOs and other issues.
...and now we've got a Republican senator saying that these people should commit suicide, and we've got a Democratic president and a Democratic senator saying that these workers will either have to give their salaries back or they'll be slapped with after-the-fact 100% tax rates.
In a political environment like this, I'd suggest that a lot of folks who can deliver massive amounts of value would be quite leery of signing up for a new job with variable, results-based compensation.
Thanks - that's really helping the economy!
> we've got a Democratic president and a Democratic senator saying that these workers will either have to give their salaries back or they'll be slapped with after-the-fact 100% tax rates.
Don't forget the recently passed legislation exempting these bonuses (contracts signed before Feb last year) from the executive pay limits. Said legislation was voted for unanimously by Dem senators, nearly unanimously by Dem house members, and signed by Obama.