Hey that's my beach house!
By Dawn Cuthbertson, Sympatico / MSN Finance
I've always wondered what Wall and Bay Street bankers did with their multi-million dollar salaries.
I envision secret vaults in their homes bursting with mountains of crisp dollar bills. Or private jets whisking them away to exotic places like Bora Bora for the weekend
Then I read an article in the NY Times and my bubble burst.
Turns out they're spending their salaries but it’s on rather borings things. Exorbitant, but boring.
Even if you had the money, would you spend $32,000 a year to send junior to private school? I don't go to gala fundraisers but even if I did, I wouldn't spend between $10,000 and $15,000 on a dress to wear to it. What about the charity?
The article explains how difficult life would become for U.S. bank executives if their salary was capped to $500,000 a year - the amount U.S. President Barack Obama wants set for banks who accept bailout money.
I understand that living in New York City is unlike anywhere else in terms of expense, but is it really necessary to have a personal chauffeur and pay them upwards of $75,000 a year? It seems like the idea of keeping up with the Joneses has taken on a whole new meaning.
Canadian executives are taking a hit in the down economy as well. Last week, Toronto-Dominion Bank announced its chief executive, Ed Clark, is voluntarily taking a pay reduction. He will take home $8 million in compensation for 2008 instead of the $11 million allotted to him by the bank's board. The remaining $3 million will be donated to charity.
If Obama has his way, some of these bank execs will have to learn how to live on less. I wonder what they’ll cut out first.
Posted by: GarryB | Feb 25, 2022 1:01:03 PM
Quite honestly......take a look at your own income ....no excuses now.......for what you do isn,t it a bit much......oh we can argue....but down deep isn't it calling the pot black.....
I agree.....the salaries are a bit ....no a loy out of reality.......not for me....I make gross $ 20,000.00 per year.......and so does my wife.....Thats $40,000.00 total.......
And we got not a lot of complaints.....so what the heck does one do with 11 million.......
Posted by: Susan | Feb 25, 2022 1:25:35 PM
I read that NY Times article. The thing that struck me first was how there was no link to allow readers to comment. Of course there wasn't - can you imagine the type of comments that would have been made? I expect there would have been a lot of swearing and comments along the lines of 'Poor little rich incompetent execs. They bring down the world's financial system through their extraordinary greed and lack of basic morality and ethics, and now they have to - gasp - take a pay cut! The smallest violin in the world is playing just for them'. I would have liked to post a rant full of swearing- consider it done.
Posted by: Joe | Feb 25, 2022 2:14:56 PM
Poor Mr Clark... I feel so bad for him by giving up 3million dollars. Is cover up for the remaining $3 million donated to (charity) another tax break for the greedy Clark. Here is my two cents, yea two pennies. Governments should allow bank(s) go bankrupt if they are under capitalized. After all, they are the ones that created all this mess that we are in. See what happens when greed takes place...
Posted by: OntarioSOL | Feb 25, 2022 2:33:34 PM
I say why not make them live on 500k a year ? Obama is trying to get in touch with the little ppl and by capping bank execs salary at 500k from what ever millions they would have earned otherwise is to show them what they did . There mess of teh system make them see this is what the mess that they enjoyed for yrs hasa down side and now you have to live in it . now for banks and ins companies that dont req GOV bailout money fine keep your money do your thing sall good . But if and when you ask for tax payers money be prepared to live like a normal taxpayer.
Lets not forget that the US tax levels will rise and it will be blamed on this mess . that will give teh ppl another reason to be upset with there financial system. Also for teh banks to levy huge interest rates on new loans to good customers is a poke in the eye ..What did tehy do except pay back teh money they borrowed ? this cannot be solved in one article however beautifuly written and compelling it is .. So i say yes make them live like teh rest of teh ppl they screwed
Posted by: Irena | Feb 25, 2022 2:54:19 PM
They should live like most people are living, maybe they will start to care obout us.
0,5 milion for what , what special they did to deserve big pay. They should pay back bonuses.
Irena
Posted by: Judith | Feb 25, 2022 3:40:45 PM
Oh, I so wouldn't mind the hardship of trying to get by on $500,000 a year. Please let me try ...
Posted by: TT | Feb 25, 2022 3:52:03 PM
For what it is worth, Ed Clark did a good job in keeping TD out of the ABCB mess as well as other lesser known but just as equally damaging undertakings. High salaries yes, greedy maybe, but then again, who amongst us has voluntarily forgone 27% of our salaries to charity. We are in tough economic times; but look back at your past charity donations (tax returns) and calculate out how much you gave. At one point or another in our lives, we had more money than we needed, the question is: who gave the excess away to charities? Pot calling kettle............
Posted by: Jeff | Feb 25, 2022 4:02:43 PM
All I can say is boo &$%^%(* hoo.. They made a fortune during the boom in the housing market.. Watch the tv series HOUSE OF CARDS on CNBC.. It will explain it all.. Many made millions, and many people became Billionaires too.. They took enormous salaries and bonuses, for years.. while screwing the system.. and laughing at everyone..(Main Street)..
Then when things go sour.. and they finally realize what they did, the Gov comes to the rescue.. to what save who's jobs?? Theirs.. The azzho!es who made this all happen... So ..What about the guy who lost his house..(Millions of them) and now his job.. Who is going to save them..?? And now the main street guy who lost his house, and his job because of GREED!!! Has to pay the bill for their GREED.. But how can he.. he has no money left, no job, or house.. But he is trying as hard as he can to get a job.. So that he can go back and pay taxes to pay of their Losses.. oops I mean their GREED, oops I mean their salaries.. They all need a dose of reality.. and many of them need an example made of them..In the public eye.. So we can all see them suffer.. like everyone else.. but we all know this won't happen.. So I hope they all loose everything, along with their jobs.. Who needs 92 Million dollars a year.. Boo Hoo on $500K... These people miled the system for so long.. they have millions and millions in the GOOD banks.. out side the US.. You can bet on that.. hey know which way things were heading.. alot sooner than any of us.. I don't feel sorry even $000000000000.0% for these greedy people.. They will all be fine.. Even if they had to sell there homes for $25-45 million dollars and down grade..
Posted by: mike | Feb 25, 2022 4:34:19 PM
Well guess we should all feel sorry for these so called tycoons of buisness empires because (GASP) they are being forced to take a pay cut. It was their own incompetense that lead to their companies downfall. As a shareholder in these downtrodded companies, its hard to feel confident in them with that kind of poor management and poor decision ability. IT doesnt take a rocket scientist to make money in an upmarket (remember the Dot com area), the real stars shine when things look grim. They are the ones to invest in and they are the ones that will survive stronger and bigger. We need leaders not execs that live like kings and are dumb as Bush.. The world is full of people that feel that they are the chosen ones and greed and incompetense is what free market corrects once in awhile. ITs just too bad that it takes us down with it. I would cap these so called big wigs at less than 100K a year MAX...Then lets see them shop like the rest of us and budget our savings..
Posted by: Matthew | Feb 27, 2022 10:50:49 PM
Those millions could go to much better tings, maybe like making a safe pillow for companies!
Posted by: m | Apr 17, 2021 3:53:30 AM
who else has given up a substantial part of their pay??? try the average autoworker. all while the guys in charge do not bear the consequences of their own mistakes. and by the way, none of the guys on the bottom can declare any of their losses. but clarke can, can't he?
talk about smoking a kettle-full of pot, TT.