Big Businesses Offer Revolving Door RewardsTweet
March 21, 2013
Major corporations are making it financially advantageous for executives to take government jobs, according to a new article by the Project On Government Oversight that reviewed regulatory filings from major Wall Street firms.
Many compensation policies have special clauses for executives who leave the firm to work for the government. These clauses include giving executives a “lump sum cash payment” in the case of Goldman Sachs or a bonus they would normally forfeit if they left Morgan Stanley.
These policies may be fueling the revolving door and making it easier for alumni from these firms to gain influence over public policy.
From the article:
These companies seem to be giving a special deal to executives who become government officials. In exchange, the companies may end up with friends in high places who understand their business, sympathize with it, and can craft policies in its favor.
At a minimum, these provisions show that the revolving door is such a fixture in Corporate America that it is written into the executive pay structure.
Read the full article to see which major Wall Street companies are offering rewards for moving to government.
This article continues POGO’s reporting on the revolving door between financial firms and the government. Recently we also published a major report on the revolving door at the Securities and Exchange Commission (SEC) and updated our one-of-a-kind database on where SEC employees go after they leave the agency.
Andre Francisco is the Online Producer for the Project On Government Oversight.
Topics: Financial Sector
Authors: Andre Francisco
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