The net revenues of Wall Street’s seven biggest firms collectively fell 6% last year. Sub-prime mortgage-related losses at the biggest firms totaled $55 billion and erased more than four times that amount in shareholder value.

However the workers that prowl the halls of these seven firms pulled in $122 billion in total compensation and benefits, up 10% from 2006. Bonuses totaled $33.2 billion for 2007, down just 2%–pretty good when shareholders lost half their holdings.

This is the Wall Street compensation process:  bonuses are paid no matter what.

Now, I totally understand that not all employees lost money for their  firms, some even made cash for their organization.   As I have said over and over again, employees expect the best to get the greatest reward. They have to be recognized and rewarded or they will leave.

The fun part of Wall Street?  Even employees who lost money for the firms get rewarded, just not as much or they will leave. 

Sometimes it’s good to be bad.

2)  Angelo Mozilo chairman and CEO of Countrywide Financial is giving up $37.5 million in severance pay, fees, and perks he was scheduled to receive upon retirement. However, he will be allowed to keep his “already-earned retirement” package worth about $24 million. Experts indicate Mozilo’s decision to give back some payments came in the face of pressure from politicians who berated him for his greed even as millions of Americans face the real threat of foreclosure.

 In addition, Countrywide Financial has approved the payment of $7.39 million to retain president David Sambol and three other senior executives.

Sometimes it’s good to be bad.

3)  A federal bankruptcy judge told Delphi Corp. he would approve their plan to exit bankruptcy protection only after it reduces bonuses to executives by 80%. Delphi planned to pay nearly 600 executives a total of $87 million in bonuses (nearly $160k per executive). The judge said Delphi had not proven the cash bonuses were necessary to the company’s larger executive compensation plan.

Sometimes it’s good to be bad.  Really good!