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December 15, 2008
NEW YORK — Some welcome changes are starting to emerge in how executives at Wall Street firms are compensated. The top brass at Goldman Sachs, Merrill Lynch and other firms are pledging not to take bonuses this year, and Morgan Stanley says it will start reclaiming cash awards that were based on what turned out to be failed bets.
But those initiatives still don't go far enough to rid the system of the excessive pay that put this industry at the center of today's financial storm. That will come when all components of compensation are significantly reduced as part of a rethinking of how risk-taking is rewarded.
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