Monday, October 12, 2009

Nothing's changed!

See the 2008 story of Andrew Hall's compensation here. And another story

He indicated that he would  move back to his roots -- UK -- if he does not get his dues, because the whole of America is balking at paying his eye-popping profit-share in commodities trading. So guess what, Citi has sold off Phibro rather than handle the controversy and embarrassment of paying him $100Mn when they still haven't repaid the Government bailout money. Now, Occidental Petroleum, the buyer, will have to handle the embarrassment. He's that valuable!  Is he, really?? 

True, his bets have gone right much more than they have gone wrong. What if they had failed? Would his employer be able to claw back the losses from his past pay? 

The inability to rein in "star traders" such as Hall  and "star-CEOs" is one of the biggest continuing governance failures that the developed world has still to get its hands around. 

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