Five Reasons Citi's Worth the Long Risk [View article]
Barry,
You completely ignore the possibility the government will nationalize Citi wiping out all shareholder equity in the process. I think that alone makes buying Citi an extremely risky proposition.
Why put a cap on pay? Why not set up a system of incentives instead? The better these guys do turning around their brokedown companies, the more they earn. If they continue to screw up, I don't see why they deserve even 500k.
Bottom line: why not institute a performance-based system instead of capping pay at some arbitrary number?
Five Reasons Citi's Worth the Long Risk [View article]
You completely ignore the possibility the government will nationalize Citi wiping out all shareholder equity in the process. I think that alone makes buying Citi an extremely risky proposition.
Best,
Jon
Why Capping Pay Is Likely to Work [View article]
Bottom line: why not institute a performance-based system instead of capping pay at some arbitrary number?