Bank CEOs Profit From Stock Market Slump

The video discusses how bank boards decide on CEO compensation, using Citigroup's Mike Corbitt as an example. It explains the process of determining equity based on stock prices and the implications of stock price fluctuations on CEO wealth. The video also highlights the impact of stock ownership on CEOs like Jamie Dimon and Lloyd Blankfein, and how changes in stock prices have affected their billionaire status. Finally, it covers the yearly changes in CEO compensation, including increases in both dollar value and stock shares.

How do banks determine the number of shares to give their CEOs?

• By using the previous year's stock price

• By comparing with other banks' CEO compensations

• By setting a fixed number of shares regardless of stock price

• By tracking the stock price over a week and dividing the compensation by the number of shares

What is a short-term effect of stock price drops on CEOs like Jamie Dimon?

• They lose their billionaire status

• They receive fewer shares

• They become wealthier

• Their compensation is reduced

What is the long-term hope for CEOs when stock prices are down?

• That they will receive fewer shares

• That the stock price will continue to decrease

• That the stock price will rise and they will benefit from more shares

• That they will be able to sell their shares quickly

What is different about CEO compensation this year compared to last year?

• The compensation is based on last year's stock price

• There is no change in compensation

• CEOs are getting raises with more shares

• CEOs are receiving fewer shares

What does the term 'route' refer to in the context of CEO compensation?

• A type of stock option

• A method of calculating compensation

• An increase in stock price

• A decrease in stock price