SEC Chief Raises Concern About Broker Bonuses
http://www.nytimes.com/aponline/2009/08/31/business/AP-US-SEC-Broker-Bonuses.html
Mary Schapiro, head of the Securities & Exchange Commission has warned US investment houses against using bonuses and other inducements to attract and recruit brokers who generate high sales volume and act against consumer interests. The high compensation or the additional incentives offered to lure brokers may encourage them to sell securities in high volumes to justify the special benefits granted to them. The pressure may also force the brokers to conduct in such a way that it is harmful to the investors, Schaprio said in an open letter to the CEOs of the investment firms. So the CEOs and the management of the various investment firms should keep in mind that investor interest is their prime motive and should be carefully considered in all types of transactions. So investor is supreme and we need to take care of him.
