Labor chief hammers Wall St. over golden parachutes

Labor chief hammers Wall St. over golden parachutes
© Greg Nash
AFL-CIO President Richard Trumka is calling on Wall Street to end the practice of giving golden parachutes to top executives leaving for government jobs. 
 
Trumka sent a letter on Thursday to six top banking executives — at Goldman Sachs, Citi, JP Morgan, Morgan Stanley, Lazard and Bank of America — calling the policy “a highly controversial and dubious practice” intended to sway banking executives into providing favorable government treatment to their former firms.
 
“The acceleration of equity awards for executives who voluntarily resign to enter government service adds a new and outrageous wrinkle,” Trumka wrote.
 
“After all, how do Wall Street banks benefit from giving their executives a financial incentive to enter government service? Do they expect to receive favorable government treatment from their former executives? If not, why should bank shareholders be asked to bear the cost?”
 
 
 
Another outspoken Democrat, Sen. Elizabeth WarrenElizabeth WarrenThe private alternative to the National Flood Insurance Program  Warren: 'I'd be very glad' for Sessions to quit Warren gives Trump an 'F' on draining the swamp MORE (Mass.), said in July that the measure is one that “any presidential candidate should be able to cheer for.”
 
 
Trumka argued in the letter that banks should take the initiative and stop the practice and that it should “not take the passage of a law defining them as bribery under the U.S. criminal code for you to do the right thing and stop offering them.”
 
“What was once an obscure executive compensation practice on Wall Street is now notorious and in the public eye,” Trumka said.