Payment In Kind

Credit Suisse has a fine idea:

Credit Suisse announced today that bonuses for its top executives would be made in illiquid, mortgage-backed securities. Seeing as these guys are responsible for getting this stuff on the companies books, it makes sense to shove it back to them. And if the market gets liquid again, and the stuff goes up, that’s going to be a huge windfall for execs.

I’d like to see this idea spread. Maybe Congressmen could be paid in Freddie Mac paper and union officials in GM stock. The possibilities are endless!

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