CEOs of Big Banks Meet With NY Fed on Compensation
Bill Dudley, president of the New York Federal Reserve, summoned 28 CEOs of the nation’s top banks Monday to reinforce compensation-related principles the Fed outlined in a proposal in October.
Among attendees at the meeting were Morgan Stanley CEO John Mack, JPMorgan Chase CEO Jamie Dimon and Goldman Sachs chief executive Lloyd Blankfein.
Dudley told the execs that the Fed is focused on working with the banks on how they can compensate risk-takers at their firms, and told them Wall Street has to be disciplined about compensation. Dudley didn't tell them to limit compensation, but said they do need to be cognizant of the environment that banks are currently operating in.
Last month, the Fed said it would crack down on pay packages that encourage bankers to take excessive risks.The Fed’s plan will subject executives and other employees of big banks to scrutiny of their compensation.
Morgan Stanley's Mack told Dudley global coordination between regulators on pay would be helpful to banks.
Mack, JPMorgan's Dimon and Goldman Sachs' Blankfein met with Dudley for less than an hour.