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Are Wall Street Executives Getting a Raw Deal?

By David Hanson and Matt Koppenheffer – Feb 19, 2014 at 7:00AM

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Insiders are selling, but is that just the new normal?

Wall Street insiders, like JPMorgan Chase's (JPM 1.65%) COO Matt Zames, have been cashing shares in lately. Is this a sign it's time to sell or just the new normal on Wall Street given the new reliance on the stock-based compensation?

In this segment of The Motley Fool's financials-focused show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson discuss the impact of stock-based compensation and which method, cash or stock, they like to see executives rewarded.

Does insider selling mean investors should flee these big banks?
Many investors are terrified about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.

David Hanson owns shares of Goldman Sachs and JPMorgan Chase. Matt Koppenheffer owns shares of Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase. The Motley Fool recommends Bank of America and Goldman Sachs. The Motley Fool owns shares of Bank of America, Citigroup, and JPMorgan Chase. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Citigroup Stock Quote
Citigroup
C
$47.57 (0.72%) $0.34
Bank of America Stock Quote
Bank of America
BAC
$37.00 (0.38%) $0.14
Goldman Sachs Stock Quote
Goldman Sachs
GS
$381.21 (0.35%) $1.34
JPMorgan Chase Stock Quote
JPMorgan Chase
JPM
$136.56 (1.65%) $2.21

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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