The Wall Street Journal has an article up describing how shareholders and the
New York City Comptroller's office, have forced Goldman Sachs and
Morgan Stanley into additional disclosures on their compensation clawback policies. Goldman and Morgan Stanley have clarified who clawback provisions apply to and what can trigger them.Informative. But what should really stand out about the article is this sentence:Michael Deutsch, an employment lawyer who specializes in Wall Street pay, said that despite clawbacks provisions' prevalence, "the actual implementation of a clawback has been pretty rare."There you have the basic irrelevance of clawbacks, exposed in a single sentence: everyone talks about them, no one uses them.That could change, but until it does, clawbacks will continue to largely be a sideshow that diverts from regulatory changes that will fundamentally change banks' business models. Please follow Clusterstock on Twitter and Facebook.Join the conversation about this story »See Also:Lazard Warns Wall Street: Deferred Comp Is No 'Free Lunch'Enough With The Rumors, Here's Who Is Underwriting Facebook's IPOGoldman CEO Blankfein Receives $7MM In Stock For 2011

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