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Windfalls for Wall Street Executives Taking Jobs in Government
By SUSANNE CRAIG
President Obama with Jacob J. Lew,
the Treasury secretary.
People usually say they go into government to perform public service. If they came from Wall Street, however, their former employers often provide another service.
Banks, including JPMorgan Chase, Goldman Sachs and Morgan Stanley, all have provisions that allow acceleration of payments owed to senior executives if they take government jobs, a new study finds.
Such a benefit was highlighted recently during the confirmation hearing for Jacob J. Lew as Treasury secretary. His previous employer, Citigroup, had guaranteed him preferential financial treatment if he were to leave to take a job in the government. When Mr. Lew left Citigroup he held stock that he could not immediately cash worth as much as $500,000, according to a government filing.
“These companies seem to be giving a special deal
to executives who become government officials,” says the study, to be released Thursday by the Project on Government Oversight.
“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 
.”
The study looked at the compensation policies of several financial institutions.
The accelerated vesting of Mr. Lew’s shares is part of a larger debate on Wall Street and in Washington, where people frequently move back and forth, creating concern that government officials may favor their old colleagues on Wall Street.
The debate has heated up recently as top officials from the Securities and Exchange Commission leave for new jobs, possibly on Wall Street, while the White House has nominated Mary Jo White, a lawyer who has represented Wall Street firms, to run the S.E.C.
Some Wall Street insiders contend that time spent on Wall Street does not compromise someone like Mr. Lew or Ms. White, saying that the experience sharpens their instincts and helps them understand how business actually works.
http://dealbook.nytimes.com/2013/03/.../?ref=business
By SUSANNE CRAIG
President Obama with Jacob J. Lew,
the Treasury secretary.
People usually say they go into government to perform public service. If they came from Wall Street, however, their former employers often provide another service.
Banks, including JPMorgan Chase, Goldman Sachs and Morgan Stanley, all have provisions that allow acceleration of payments owed to senior executives if they take government jobs, a new study finds.
Such a benefit was highlighted recently during the confirmation hearing for Jacob J. Lew as Treasury secretary. His previous employer, Citigroup, had guaranteed him preferential financial treatment if he were to leave to take a job in the government. When Mr. Lew left Citigroup he held stock that he could not immediately cash worth as much as $500,000, according to a government filing.
“These companies seem to be giving a special deal
to executives who become government officials,” says the study, to be released Thursday by the Project on Government Oversight. “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 .”The study looked at the compensation policies of several financial institutions.
The accelerated vesting of Mr. Lew’s shares is part of a larger debate on Wall Street and in Washington, where people frequently move back and forth, creating concern that government officials may favor their old colleagues on Wall Street.
The debate has heated up recently as top officials from the Securities and Exchange Commission leave for new jobs, possibly on Wall Street, while the White House has nominated Mary Jo White, a lawyer who has represented Wall Street firms, to run the S.E.C.
Some Wall Street insiders contend that time spent on Wall Street does not compromise someone like Mr. Lew or Ms. White, saying that the experience sharpens their instincts and helps them understand how business actually works.
http://dealbook.nytimes.com/2013/03/.../?ref=business
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