Despite Clamor, Financial Leaders See Big Bonuses

Financial services executives are getting big bonusesBonuses, noted Paul Hodgson, a senior researcher at
despite complaints about excessive compensation. Onthe Corporate Library, LLC, a corporate-governance
average, top executives received $3.35 million inresearch firm in Portland, Maine, "tend to be fairly
bonuses in 2005, up almost 30 percent from 2004,reflective of actual achievements." However, he said,
according to Investment News. The trade newspaperannual bonuses are now so high "that level of
based its figures on a review of compensation forcompensation should only be paid out for long-term
some 50 financial services executives.achievements as opposed to short-term operational
These executives gave up a modest amount of theirachievements."
base salary - 1.25 percent, to be specific, for anRecently, a number of investors have called for an
average of $550,405.end to such large compensation packages, and the
"Business is good, and when business is good, peopleSecurities and Exchange Commission is considering
want to get paid," New York-based recruiter Michaelchanging disclosure rules so that perks worth more
Kelly told Investment News. "Trust me, that couldn't bethan $10,000 is required, down from the current level of
truer on Wall Street."$50,000.