The result then, and the emerging result now, is that the banks' top management simply burns through that cash, socializing the losses for the taxpayer, grabbing any rare gains for management payouts or shareholder dividends, and ending up still undercapitalized.
And as Delta exits Chapter 11 this week, the rewards are being carefully spread: non-unionised employees will share $480m in cash and shares, profit-sharing schemes are being introduced and management payouts are being linked to future performance.
The committee also rounded on Jan du Plessis, chairman of Rio Tinto, over top management receiving bonus payouts relating to hitting safety targets despite four deaths at the mining group last year.
The ethics filings of state legislators should be on the site, as should the comptroller's payouts for management fees for the state pension.
R2 argued that the payouts to management and the board were contrary to the company's reorganization plan, which called for awards of options, not common stock grants, the filing said.
As a result, said Michael S. Kesner, principal in charge of the executive compensation practice at Deloitte Consulting, it is not uncommon for payouts to management to reach 8percentt of a merger's total cost.
However, the relatively low dividend payout ratio suggests management would prefer to potentially make acquisitions than return cash to shareholders.
Hendersen Group yesterday became a front-runner to buy the Gartmore fund management group after shelving a payout to shareholders to give it the necessary fire power.
Assuming that bonus amounts are, in reality, never kept private, and that workers perceive differences in payout to reflect management's perception of individual worth, a rich-and-happy program discourages team effort.
Much of MCI's senior management left quickly, flush with payouts from stock options.
