Cuomo Wants to Link Wall St. Pay to Performance

'Heads I win, tails I break even' must stop
By Matt Cantor,  Newser Staff
Posted Mar 13, 2009 6:32 AM CDT
Cuomo Wants to Link Wall St. Pay to Performance
House Financial Services Committee Chairman Rep. Barney Frank, D-Mass. goes over his notes on Capitol Hill.    (AP Photo/Lawrence Jackson)

New York’s attorney general is teaming with Washington lawmakers to develop a plan to link Wall Street pay to long-term company performance, the Wall Street Journal reports. Details are skimpy, but Andrew Cuomo is looking into spreading cash and stock payments over several years so that if firms do poorly, executives' compensation can be cut accordingly.

“We plan to put laws into effect, no question," said Rep. Barney Frank. "We have to address this 'heads I win, tails I break even' issue.” A Cuomo aide says he's mindful of meddling too much in the private sector but that change is necessary. He is mindful of "unintended consequences of compensation reform," says the aide.
(More executive compensation stories.)

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