Wednesday, January 13, 2016

The CEO of a top investment bank says Wall Street pay is out of whack

Credit Suisse CEO Tidjane Thiam says today's pay model for investment bankers "does not work."
That's according to Bloomberg's Jeffrey Voegeli, who reports that Thiam made the comments at a conference in Paris with the International Monetary Fund director, Christine Lagarde, and the Bank of England governor, Mark Carney.
"The business is structurally quite profitable provided the pay can go up and down. It's the 'and down' that they don't accept," Thiam reportedly said of investment bankers.
He said today's model of having high levels of fixed pay didn't make sense because investment banks had cyclical revenue streams.

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