Feinberg's Pay Plan: Will it Work?

" And -- on the offensive this week outlining his plan to slash executive pay for top executives -- firms. I got taxpayer bailouts of course he's made it clear he would like that's a BA broader blueprint. Tomorrow we'll speak at a Washington lost school on Wednesdays as testified for the house oversight committee. Well -- plan really help in getting American taxpayers their money back. Or -- compensation. I'm always executive director of -- company independent executive compensation aren't good to have you with us Brian we appreciate it. I have two main questions the first one is this. Broadly speaking the principles and Feinberg is put out there would do one thing for Sarah that is encourage more people to be paid in stock. As opposed to cash. Not necessarily a bad although that trend started back what 1992. -- and we went that direction and we had this crisis anyway so. Putting more pay and stock does that link. Compensation to performance -- and it was --"

" Do you look at that Dick -- on the -- of people blame and a look at Jimmy -- and yet the people Bear Stearns a look at the top out at AIG. Look at the top of the house will be available at top house that if they all had child tungsten -- stocks. And and -- that the risk was still missed or not can't -- perhaps should have been handled I don't get the connect."

" Well the one think it would seem that would make that can act because. I think people in stocks got some ticket political influence on that stock price it at sea lion individual might not take that to heart. One thing it would take part would be clock back into the trade it's about favorite take your money back but that's what I think it's not easy to do -- I don't know how in the world to actually."

" Abbott but you know what -- the path he's going down is small cash salary really big stock -- at. And the stock salary is fixed apparently without regard to performance. Others hope so there's no clawed back this Pope claw back but -- by Sally -- the cast -- at 1 o'clock back help or is that one of those kind of PSC is okay. It would help with the was performance based but it city and and be a bad you're talking about over the salary. For the top people afford have to five million dollars it -- a performance but is this week in the print journalists aren't he's an easier time seeing really it's up to the shareholders I have never ever ever seen as shareholders have any idea whatsoever about -- Give the shareholders ever really play a role. I don't think sound hey get you very far I think I think its first and foremost a matter of internal this one. And having the the mock he would do the right thing up at what what that comes down to is the competition -- guys like you. And you say oh wait a second year we can't what's making fifteen million and we see the guys over -- wells are making fifteen million right so why I should be paid -- that that's that that that's a problem but the but the fact is that that say compact that the only way sound pay. We'll have a positive effect is -- the big institutions step up. And which they could step."

" Then I don't I don't I can't talk about -- like the numbers are last year when they had us and pay the big institutions 84% of the time 8% right. Voted with --"

" A possible why why are these guys safe -- and out of money I mean if you were just in a lot of put it municipal bonds. It's not my why we care about 2009 paid -- it why can't they suffer. They they can suffer the problem is that if you were. If you were a share if if their shareholder said your banker at Bank of America you care about what the future is and at Citi Bank of America had a difficult time holding on the people. Or a difficult time hiring new people again you've got a profit."

" Thank UK people -- this is what I think would be a great untold story he could see a lot of people at city and be a day. Being paid a whole lot more than people even people -- if they can't pay it back and they'll make up for the risk of working there. With bigger stock components in the day they do that."

" The the stock compensation. At least in the first chaos. At bank of Americans that he. The debate the -- and that it in the -- to -- is only four and a half to five. -- just at the top 45 executives what about all the trader out there is now back then that's -- therein lies the rub the Al goes the next 75 in the one of the big open questions is what happens of those 75 is he going to drive tried tried to -- thinking down. Down to those people because as Jim -- not -- as you know Aaron there are certainly traitors out there from foreign have a five million isn't going to do it. If they're if they're very successful trip and I know out outside of New York that sounds strange but it's NFL it's info you not to get these players like. And the White House may very and it did not want art pay -- I think I'm always expressed well thank -- pleasure being here."