Tuesday, 4 August 2009

Day After Pay Day - Bob Hadley (1973)

It seemed like a matter of time before the executive pay and stimulus money trains were bound to collide over commodity trader tracks.

Andrew J. Hall of Philbro, a small Connecticut-based commodities trading firm, (and is an ex-BP employee) is supposed to receive his bonus amounting to $100,000,000 as part of his contract for aggressively betting on oil prices. However, the Treasury Department's czar for executive pay, Kenneth Feinberg, will have to determine whether Mr. Hall should receive a bonus given that his contract is with Citigroup, who received about $45 billion in taxpayer bailout monies. Moreover, regulators are trying to cut down on speculator activity that they beleive caused oil price fluctuations of late.

There's a lot more to this story as reported in The New York Times and Yahoo!

Should Mr. Hall earn his full bonus?

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