It's a new day for big Wall Street bonuses

Regarding the Jan. 19 editorial "Payback time":

The Post argues that Wall Street bonuses are "best left to market forces and the decisions of private-sector figures, such as executives and the boards of directors who are supposed to hold them accountable." In other words, we should let the foxes keep guarding the henhouse.

Wall Street's tradition of paying enormous bonuses in lieu of salary may have worked when firms were private partnerships. Back then, partners' capital was at risk, and managing partners had a vested interest in appropriate compensation. In contrast, today's Wall Street firms are publicly traded and owned by a diverse group of shareholders who lack the power to protect themselves.

Under the current system, the lure of big paydays dwarfs the interests of executives as stockholders, and taxpayers are too often left holding the bag. For example, between 2000 and 2008, the top five executives at Bear Stearns pocketed $1.4 billion in cash bonuses and equity sales, while Lehman Brothers executives took home $1 billion.

Allowing banks "to pay people as much as they want" will not protect shareholders or taxpayers.

Richard Trumka, Washington

The writer is president of the AFL-CIO.