msoori

How E*Trade Is Trying to Survive in the TARP Era

"And arguably, not accepting TARP funds (albeit through not being allowed to) may mean that the broker didn’t suffer the unintended consequences of doing so, such as disincentivizing key employees by introducing ludicrous long-term performance-linked salary structures."

These KEY employees who are paid regardless of their performance is the problem. If disincentivizing these KEY employees is a problem, I guess some one needs to ask the question, where will they go? With the whole economy hanging off a cliff due to the risks taken by these KEY employees, they have no place to run and hide. Its time the compensation is tied to their long term performance.