One solution to the pay conundrum

Too bad AIG didn't think of this. Credit Suisse has raised eyebrows for its plan to pay out part of its bonuses in toxic assets. Typically, bankers at Credit Suisse get about half of their bonuses in cash. For the rest, such as managing directors (of those who got a bonus anyway) they were forced to take, not stock, but rather a stake in what the bank has dubbed the PAF, the Partner Asset Facility, Portfolio notes. It sounds a little Feds-speak-ish for my tastes, but maybe that was deliberate.

The assets of that facility were valued at more than $5 billion, after $2.6 billion in write-downs. They are likely worth far less than that today. But depending on what's included, there could be some significant long-term value here. As far as I know, this has not prompted an internal rebellion. It may strike some as a sick joke, but it really depends on what's in the portfolio. 

For more:
- here's the Portfolio article

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So how do you deal with toxic assets?