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Generally bank executives have aggressive clawback provisions in their contracts, far in excess of line employees. They often can even claw back already paid an
by fnordpiglet 4y ago
Generally bank executives have aggressive clawback provisions in their contracts, far in excess of line employees. They often can even claw back already paid and delivered (and potentially spent!) money from quite some time back if there’s cause.
Clawing back line employees deferred comp is mean. Sarah in client confirms likely did her job just fine. She should keep her deferred comp.
- taeric 4y agoI don't want to pile on the execs more, but I am suspicious of the "far in excess" number. In absolute terms, sure. Line workers probably don't have any clawback. But even after that clawback, I'm guessing the execs walk away fine?
- fnordpiglet 4y agoI’m not familiar with CS’ structure but the ones I am senior Execs can have 10–15 years of comp clawed back. Line employees still have clawbacks but it’s usually narrower (3-5 years) and a much smaller percentage of comp (100% vs 10% for example) Note the most serious clawbacks are for criminal behavior or extraordinary mismanagement. I doubt they’re invoking severe clawbacks at the extremes (100% for example)
- taeric 4y agoRight, the clawbacks for criminal behavior honestly feel out of scope anyway. And most extraordinary mismanagement will fall under fraud, so is in that same bucket. As such, I'm assuming we are not talking about 100% clawback in most cases. Such that even with the clawback I would expect to see, I'm also still expecting that they made way more money than line employees. I'd be interested in peeking at the numbers, though. Neat topic.
- Kuraj 4y agoI agree. Especially since Sarah in client confirms might soon have to look for a new job.