In the interest of keeping it real, company executives have three primary interests. One is to do what it takes to keep their jobs. The second is to move-up in their companies to positions of increasing prestige and power. And, third is to maximize their personal income.
Guess what? There is one answer for all three interests – maximize the amount of “revenue” they generate from their clients’ assets. Companies do not fire executives that produce a lot of revenue. In fact, they promote them so they can increase the productivity of other company employees. And, the more revenue they produce, the more money they make.
This is the culture of the typical Wall Street company. The only variable is the companies’ ethical treatment of clients. Based on recent headlines, the needs of clients are a distant second to the production of revenue at companies like Goldman Sachs and Citigroup.
Make no mistake this is a cultural issue that is deeply imbedded in Wall Street business practices. The only way this culture will change is new regulations. That is not gong happen. Wall Street bought the politicians who control the regulations a long time ago.
You cannot afford to assume companies are ethical because they are big. It is safer to assume someone is paying for the opulent offices, company jets, and private country clubs. Just make sure it is not you.