What constitutes an exec?

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Feb 4, 2009 8:56 am

Do "First Vice President" titles mean that FA is an exec and under proposed legislation not able to receive compensation over $400-500(k) non restricted stock comp if company received TARP?  How about retention "bonuses".  Oooo baby baby it's a wild world.

Feb 4, 2009 9:03 am

Good question.  There will be all kinds of people who pretend to know, but nobody really does.  How about a $1.5mm producer at Citi/SB who is about to get a 100% retention bonus?  Will it have to be in stock?  How about a $2mm producer paid out at 49% grid?  Those guys all carry around cards that say they're "First Vice President" or "Managing Director"--those sound like executive titles.  In fact, that's why they were given the titles in the first place.

As soon as you crawl into bed with the federal government, don't be surprised when they start to run everything.

Feb 4, 2009 9:25 am

As Ronald Reagan once said, the most dangerous words in the English language are, "I'm from the government and I'm here to help."

Feb 4, 2009 9:43 am
GoodTimes:

Do "First Vice President" titles mean that FA is an exec and under proposed legislation not able to receive compensation over $400-500(k) non restricted stock comp if company received TARP?  How about retention "bonuses".  Oooo baby baby it's a wild world.




 
 
That's an easy answer.  What ever is politicially expedient and makes for good press for a politician.  You BET they will call us executives.   At this point Id be surprised if they paid any retention to anyone
Feb 4, 2009 11:34 am

Buki is dead on the money.  I'm not saying they won't pay something, but the politics of the situation is now the driving force. 

Do you think any of these guys that run these banks wants to get hauled in front of congress for a bunch of brokers?  They are probably sitting there dog-cussing the fact that they have to fool with brokers.
The sooner the bankers spin off the brokers, the better.  I have always maintained that Retail Brokerage and Retail Banking are about as similar as football and basketball.
Feb 4, 2009 11:46 am
GoodTimes:

Do "First Vice President" titles mean that FA is an exec and under proposed legislation not able to receive compensation over $400-500(k) non restricted stock comp if company received TARP?  How about retention "bonuses".  Oooo baby baby it's a wild world.

 
Always told that an FA title is a sales title not a corporate office, hence
First Vice Pesident Investments. But then again is guess under "The One"
words are what i want them to mean.
Feb 4, 2009 11:49 am

Why should my tax dollars go to a rep at a failed wirehouse?


 
I think my clients would feel the same way!
 
Maybe we should all call our Senators so this does not happen,and also let our clients know about this if it would happpen!   
Feb 4, 2009 11:54 am

I heard Obama's speech on CNBC.  It would be hard for anyone at Wachovia or Morgan Stanley to think that retention packages are somehow excluded from this new limitation.  Unless these firms are ready to cut a big check to get the Federal Government preferred stock paid off, how can a big producer sitting at SB think he's going to get $1mm cash to stay under the new MS/SB, just because his firm is being merged?  

Feb 4, 2009 6:49 pm

I have a strong suspicion that the politicians don't give a damn about the semantics of who is considered an "officer" and who is not.

 
Greenbacks has a good point.  You have to start thinking like a politician.  If brokers start getting big fat checks, don't you think John Doe on the street, who just lost his job is going to be pissed?  Even if it's only a few brokers that get checks, it creates problems for politicians.
 
I am starting to believe that this retention is going to come under some hard pressure.  I may be wrong, and the bankers may be really pulling hard for the brokers they just bought, but you know, they may not be.  The bankers don't want undue scrutiny either. 
 
I still say, Retail Brokerage and Banking are very, very, very different businesses and cultures.  Glass-Stegall existed for a reason.
Feb 6, 2009 2:02 pm

Having worked at BAC in IBanking I remember there was this book that was about 500 pages (B4 NationsBankmerger), and once youmade VP you signed some form and they put your signiture in this book. Since you had been appointed by the BofD you could legally commit the Bank to certain corporate acts, hense you were an officer, even at the lowly level  of VP (wanna raise? Here take this title instead).