Dec 14, 2011 Comments Off on Lakeview protest targets record bank bonuses
Lakeview residents plan to move $170,000 out of big banks Thursday as a protest against astronomical – and growing – executive compensation at big banks.
They’re targeting branches of JPMorgan Chase and Bank of America in an action planned for Thursday, December 15, 5 p.m., at Clark and Belden.
Lakeview Action Council members are among thousands of community activists across the country who have signed a letter to the CEOs of Chase, BofA, and Wells Fargo, calling on them to forgo bonuses and use the money to keep families in their homes, provide credit for businesses, and pay their fair share of taxes.
While media reports have suggested bank executives will face a pay cut this year, the New Bottom Line campaign analyzed compensation pools for the first three quarters of the year and projects that compensation will be up by 3.7 percent.
At BofA, despite heavy losses and plummeting stock prices this year, compensation setasides have increased by 7 percent, according to the group.
Last year JPM Chase CEO Jamie Dimon earned $10,400 an hour, according to NBL.
“These bonuses [represent] families facing foreclosure that can’t stay in their homes, taxes not paid, student loans not made.,” said Liz Ryan Murray of National People’s Action, which is part of NBL. “These execs are rewarding themselves for damaging our communities and economy.”
Changes in executive compensation are credited with driving the high-risk investment strategies that crashed the economy three years ago. With longterm unemployment and foreclosures still climbing, recovery is still a long way off.
But with the help of federal bailouts, big banks have recovered nicely; they currently sit on $2 trillion in cash reserves. Rather than using the money to create jobs, they have spent lavishly on mergers and acquisitions, stock buy-backs, dividend payments, and executive bonuses, Murray said.