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Bank of America (BAC -0.2%) employees are massively overpaid, asserts Rochdale's Dick Bove....

Bank of America (BAC -0.2%) employees are massively overpaid, asserts Rochdale's Dick Bove. After reviewing total compensation versus pretax earnings at the 23 companies he covers, BofA employees stood out, earning a whopping 38 times what the company itself brought in during that time period.
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Comments (7)
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    This problem starts at the very top of this organization. Anything more than minimum wage would be excessive for Moynihan at this point. Finally, Bove gets something correct.
    30 Dec 2011, 12:29 PM Reply Like
  • moneyTalksBSWalks
    , contributor
    Comments (193) | Send Message
     
    Dick Bove is truly a dick and this "analysis" goes a long way to cement that fact. Most of the time he is irrationally bullish on banks regardless of the underlying fundamentals and developing stories. And now this piece of shit article which is termed "analysis" A lot of folks (and presumably Dick too) know that BAC's earnings are depressed due to lawsuits, settlements, mortgage losses, etc. So the ratio he presents is going to tell a twisted tale due to the somewhat volatile nature of the denominator and the somewhat stable nature of the numerator. Also what kind of insight can really be gleaned by having a ratio that compares headcount costs to earnings? Elevated numbers are pretty much a given for any firm/industry that is going through tough times and is in the process of reducing headcount. What is Sir Dick proposing? That a significant % of ALL employee compensation should be directly indexed to earnings so as to keep the ratio in balance. That should go down real well with the $10-20 hr teller jobs and the facility security guys. BAC will be setting quite a precedent here and I suppose Dick will then next educate us on how to squeeze blood from a turnip. Why do assholes like Dick get any kind of coverage at all? The man needs to return back to school and get re-educated on what ratios make sense.
    30 Dec 2011, 12:38 PM Reply Like
  • daro
    , contributor
    Comments (1579) | Send Message
     
    Bove has been touting BAC for a long time ( a lot on cnbc). He has been terribly wrong. Now he says that BAC employees are overcompensated. regardless that point is much less important than BACs other major problems. it is more evidence of a confused mind.
    30 Dec 2011, 12:48 PM Reply Like
  • PVizzle
    , contributor
    Comments (741) | Send Message
     
    Dick Bove is the worst analyst on the street
    30 Dec 2011, 12:42 PM Reply Like
  • Dr. Poly
    , contributor
    Comments (364) | Send Message
     
    Dick Bove is a close second. My analysis of "Roachdale" securities shows that Dick Bove earned 37 times as much as the firm took in.
    30 Dec 2011, 01:22 PM Reply Like
  • SivBum
    , contributor
    Comments (1776) | Send Message
     
    Bove may be wrong in everything else, but the excessive executive compensation for those highest paid BAC employees is true. Those crooked idiots ought to be fired by crushing the shareholders and employees with their missteps like buying Countrywide to monthly fees on debit cards!!!!!!
    30 Dec 2011, 01:55 PM Reply Like
  • moneyTalksBSWalks
    , contributor
    Comments (193) | Send Message
     
    Excessive exec compensation is likely an issue not just at BAC but at many other large firms. Dick however is not commenting on exec compensation but total compensation of the entire workforce. Dick's analysis is not even worthy enough to be used as toilet paper BUT if there was any further merit to this line of thinking perhaps what would have helped is to look at the ratio of exec compensation(say for the C level mgmt team) to gross and net earnings across say 10 years, create a trend line and then compare across major firms. Since total senior mgmt pay (ideally at least and we all know how ideal exec compensation practices are in good ole USA!) is supposed to track closely the fortunes of the firm, this kind of comparison would make more sense (not perfect by any means but several orders of magnitude better than the asshat analysis that he has produced)
    30 Dec 2011, 02:54 PM Reply Like
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