Bank executives don't leave after their pay is cut.

[Mayabird]

Yeah, I know this thing is barely an article, but the real ones aren't loading for me on this connection for some reason and this one links to one from the NY Times. If someone could repost that one, I'd greatly appreciate it.

The Banker Exodus That Wasn't
By Julie Steinberg
Morning Coffee Newsletter


When pay czar Ken Feinberg emerged on the scene last year, people were afraid that a brain drain from top banks would be inevitable. Nobody, the theory went, would stick around a place that drastically reduced their paychecks.

That doesn't seem to be the case. Out of 104 senior execs whose pay was overseen by Feinberg, 88 are still at their original firms. The retention rate is perhaps surprising, given that compensation was down 77% from 2008 for top executives at those companies. What's more, 70% of all compensation to be given out this year will be in the form of stock, not cash, for those execs.

So why did they stay put? Maybe those execs were happy to withstand scrutiny for a few years until their banks paid TARP back. Maybe the working environment was so wonderful they just couldn't it give up. Maybe the office furniture was just too comfortable.

Whatever the reason, it's punctured a hole in the oft-invoked reasoning that execs will bolt if you downscale pay.

So this goes into the heap of other bluffs like, "If X happens I'll move to another country!"

Link

[Tiriol]

This was to be expected: where, in fact, could they go? Foreign banks have their own troubles and they don't want people who started this mess on their payroll, thank you very much; entire industries are laying off people and keeping their budgets very thight, so they wouldn't hire a bunch of executives and managers without a good reason (and they most likely wouldn't want people who ran the world economy to a halt); and once you taste privilege and money, it's very hard to accept a lower position. Besides, moving to a foreign country is, in fact, often a very challenging business with its own problems and hindrances.

[Admiral Valdemar]

Exact same conclusion was found by a study in this country too not long ago, as the Tories had been warning that a mass exodus of our top talent would occur should we cut bonuses and salaries. It didn't happen, and their stance couldn't possibly be down to them cosying up to Big Business, despite playing the "We'll fight for the people in reining in these rogue bankers" schtick.

[spaceviking]

It is a testament to their over compensation that they can take a 77% pay cut and still want to keep working.