As shares of bailed-out banks bottomed out earlier this year, stock options were awarded to their top executives, setting them up for millions of dollars in profit as prices rebounded, according to a report released on Wednesday.
The top five executives at 10 financial institutions that took some of the biggest taxpayer bailouts have seen a combined increase in the value of their stock options of nearly $90 million, the report by the Washington-based Institute for Policy Studies said.
Not only are these executives not hurting very much from the crisis, but they might get big windfalls because of the surge in the value of some of their shares, said Sarah Anderson, lead author of the report, America's Bailout Barons, the 16th in an annual series on executive excess.
The report -- which highlights executive compensation at such firms as Goldman Sachs Group Inc
It's also the latest in a string of studies showing that despite tough talk by politicians, little has been done by regulators to rein in the bonus culture that many believe contributed to the near-collapse of the financial sector.
The report includes eight pages of legislative proposals to address executive pay, but concludes that officials have not moved forward into law or regulation any measure that would actually deflate the executive pay bubble that has expanded so hugely over the last three decades.
We see these little flurries of activities in Congress, where it looked like it was going to happen, Anderson said. Then they would just peter out.
The report found that while executives continued to rake in tens of millions of dollars in compensation, 160,000 employees were laid off at the top 20 financial industry firms that received bailouts.
The CEOs of those 20 companies were paid, on average, 85 times more than the regulators who direct the Securities and Exchange Commission and the Federal Deposit Insurance Corp, according to the report.
(Reporting by Steve Eder; editing by John Wallace)