May 27, 2011
Elizabeth Murphy
100 F Street, NE
Washington, DC 20549
Dear Murphy,
America paid a terrible economic price because of irresponsible risk-taking by Wall Street executives. Those executives took those risks because they knew that they could walk away with billions of dollars in bonuses and stock options and never pay for the long-term consequences of their actions. We need tough rules so that Wall Street pay packages don't encourage short-term risk taking.
As a member of the American public, I am completely disgusted with "over the top" executive compensation particularly at those institutions that became part of the TARP "welfare for the rich" program. While I understand the need (brought on my wrecklessness) to "bail out" the big banks, I see no reason why those who are still in place should be personally rewarded for bringing us to the brink of financial disaster. In fact, I am also disgusted that no one has paid a price (except the public) for their actions.
I spend much of my professional life writing proxy statements and, in particular, CD&As for public companies. The companies I've written for have put a "hold" on increasing executive compensation, but these companies were not part of Wall Street. As far as I know, none of those executives quit because they did not receive millions of dollars in extra compensation.
Therefore, in order to show the American public that the government is serious about protecting OUR money and our integrity as a nation, please require at least a five year deferral period for executive bonuses at big banks, ban executive hedging of their pay packages, and require specific details from banks on precisely how they ensure that executives will share in the long-run risks created by their decisions.
Public companies should be forced to reveal their compensation strategies to the public and the public has the right to know the details of how you are creating accountability for those who were bailed out by public money. Either be transparent or stop talking about how important transparency is. The way Wall Street defines "transparency" is "we'll let you know what we want you to know." The public has a right to know how executives are being compensated.
Thank you. Deborah S. Bosley
Referencing Docket No.'s:
OTS: RIN 155-AC49
OCC: RIN 1557-AD39
Fed: RIN 7100-AD69
SEC: RIN 3235-AL06
FHFA: RIN 2590-AA42
FDIC: RIN 3064-AD56
Sincerely,
Dr. Deborah Bosley