Tinoire
05-21-2009, 08:10 PM
[div class=excerpt style=background:#FEFEFF]Banks Use Life Insurance to Fund Bonuses
Controversial Policies on Employees Pay for Executive Benefits, Help Companies With Taxes
Banks are using a little-known tactic to help pay bonuses, deferred pay and pensions they owe executives: They're holding life-insurance policies on hundreds of thousands of their workers, with themselves as the beneficiaries.
Banks took out much of this life insurance during the mortgage bubble, when executives' pay -- and the IOUs for their deferred compensation -- surged, and banking regulators affirmed the use of life insurance as a way to finance executive pay and benefits.
Bank of America Corp. has the most life insurance on employees: $17.3 billion at the end of the first quarter, according to bank filings. ...
http://online.wsj.com/article/SB124277653430137033.html [/quote]
I really wish I could say I was shocked.
Controversial Policies on Employees Pay for Executive Benefits, Help Companies With Taxes
Banks are using a little-known tactic to help pay bonuses, deferred pay and pensions they owe executives: They're holding life-insurance policies on hundreds of thousands of their workers, with themselves as the beneficiaries.
Banks took out much of this life insurance during the mortgage bubble, when executives' pay -- and the IOUs for their deferred compensation -- surged, and banking regulators affirmed the use of life insurance as a way to finance executive pay and benefits.
Bank of America Corp. has the most life insurance on employees: $17.3 billion at the end of the first quarter, according to bank filings. ...
http://online.wsj.com/article/SB124277653430137033.html [/quote]
I really wish I could say I was shocked.