Wall Street Compensation Reform: A Necessary Distinction
In the financial regulatory reform arena one of the most widely discussed and highly sensitive issues relates to compensation structures on Wall Street. From the numerous opinion-based articles written on this topic it seems that there is a growing sense of populism in America against the so called ‘unjust’ bonuses being paid out to bankers working on Wall Street. While I think it’s important that we, as a collective society, voice our populist opinions in order to make sensible reforms in regards to outlandish compensation schemes on Wall Street, we also need to be very careful about how we toss around the term ‘unjust’. And right now the general public is failing to make a very important distinction on the issue of Wall Street compensation: that is, the justness of bonuses paid out to junior-level analysts vs. senior-level managers.





