AFL-CIO Asks Banks to Explain Payouts to Government-Job Takers
Source: Bloomberg
By Madeline McMahon
The AFL-CIO, the nation’s largest labor organization, called on seven Wall Street banks to explain why the firms pay additional compensation to some employees who leave for high-ranking government positions.
Richard Trumka, the group’s president, sent letters to banks including Morgan Stanley (MS), Citigroup Inc. (C), Goldman Sachs Group Inc. (GS) and JPMorgan Chase & Co. that asked for more information on how shareholders benefit when banks reward executives for taking government jobs, the AFL-CIO said today in a statement.
The deal is a “golden parachute” for entering the public sector, Trumka said in the letters, copies of which were posted online. The AFL-CIO said it owns stock in all the banks and would consider submitting shareholder proposals at the firms’ annual meetings if it didn’t receive responses.
“Unless the position of these companies is that this is just a backdoor way to pay off a newly minted government official to act in Wall Street’s private interests rather than the public interest, it is very difficult to see how these policies promote long-term shareholder value,” Heather Slavkin Corzo, who runs the labor group’s investment office, said in the statement.
FULL story at link.
Read more: http://www.bloomberg.com/news/2014-11-20/afl-cio-asks-banks-to-explain-payouts-to-government-job-takers.html
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i am really interested in their reasoning for rewarding employees to work for the government. of course, we know why this is valuable to them, but i cannot WAIT to see their bs responses. here you go:
And I'll also have some
"do not give rise to the appearance of corruption"
Isn't Citizens United logic grand? 
