Am I the only one who feels that head honchos (mostly CEOs) of bankrupt or defunct companies should not be awarded “golden parachutes?” The amounts these days can go upwards to millions of dollars in these severance packages. Do they deserve these perks for mismanagement? I think not.
Let me take you back to the sandbox. As a child, if you were to hurt another child, whether deliberately or not, did your parents give you a pat on the head and stuffed you with cookies? If you said “yes,” you may have been a product of borderline sadistic DNA suppliers.
I may be using an overly simplistic analogy, but I am not a financial expert. But the point is that people generally should suffer the consequences of their actions and decisions. Why should these top dogs get megabones for gnawing away at the shareholders and/or employees’ wallets and nest eggs? Enron, anyone?
Who do you think will shoulder the brunt of the proposed $700 billion bailout (rejected today by the House of Representatives)? I’ll take the taxpayers for $500, Alex. It’s not rocket science, people.
We will pay the true cost of any proposed bailouts down the road. The question is, how soon is the end of that road? Will the economy do a “Thelma and Louise” and drive off the cliff, dragging the rest of us along for the ride but leaving these fat cats on the side to lick the cream off their paws?
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Oh, I agree with you, Vikki! The gov’t should strip those robber barons of their golden parachutes, throw them in prison to rot for a LONG time, and use that money to fix the damage. Not our taxpayer money!
Things are definitely turning scary right now.
Halloween is coming up, but that holiday has NOTHING on the jitters and scares of the current market.
I completely agree. :D I think your sandbox analogy was fine and much deserving. :P I had an impulse to say to Baby George… *patting on his head* “Now see there George?? You must stand in timeout and think about what you did wrong.”
LOL at “Baby George”. Now we have to make sure Baby Dick doesn’t have any toy BB guns, to ensure that some poor lil rugrat doesn’t get his/her face blown off.
I stumbled on this link:
http://www.dolans.com/family_m.....part3.html
“How’s this for a job: As the CEO of a major company, your stock is down 50%, your board of directors is chugging Maalox, your earnings outlook is grim and your employees (the ones you haven’t laid off) are nervous about their future. Hit the road, Jack. Oh, but, before you go, don’t forget to take your multi-million dollar golden parachute. That’s right, head to one of your many homes, maybe spend a little time on your yacht and leave the mess that you’ve created to the government to try to fix. Besides, who cares about all those shareholders who lost money anyway? Shameful.”
I co-sign 1,000% on that! *looking for my Tums*
Vikki and everyone,
I could not comphrend about any CEOs and other company executives being awarded the “golden parachute” packages when any company earnings and holdings go south.
Why in the world for the company board and stockholders have such pre-agreement options for the self-serving CEOs to have that kind of luxury compensation for their own company without holding the CEO to hir own abilities to steer the company into rewarding paths.
The earning inequality between the CEOs and lower level employees have been staggering high for past 30 years.
I understand about the “carrots and sticks” approach to lure the most competent CEOs to lead the company with the pre-agreement contracts like the executive bonuses. Why we should reward anyone if he or she completely head the company into the minefield?
Too many pathetic excuses for giving the bonuses to the real undeserving CEOs and other executives.
The stakeholders and investors are the ones being scammed by the CEOs and the company board in many ways with the deregulation fervors.
RLM
Kim Peterson drove the point home at http://blogs.moneycentral.msn......story.aspx :
—
“Congress wants to crack down on CEO mega-salaries for banks participating in the bailout. And while the politicians argue how best to do that, Alan Fishman of Washington Mutual is headed for the doors with $19 million in his pocket.
If that wasn’t outrageous enough, consider this: Fishman started the job three weeks ago. I never saw the employment ad Fishman answered, but it must have read something like this:
WANTED: Top executive for train-wreck bank about to be seized by federal regulators. Must be able to look busy while FDIC sells business from under you. Previous experience with angry shareholders sitting on worthless stock a plus. Perks: $7.5 million hiring bonus and $11.6 million cash severance.
Fishman got the best temp gig in history. He gets to keep the bonus and severance pay, though he must stay on the job while JPMorgan Chase completes its purchase of WaMu’s banking assets.”
—
Where is that job listing so I can sign up?
Hey Vikki,
Here’s a MSNBC story talking about why CEO pay can’t be tamed. http://www.msnbc.msn.com/id/26963309/
Interesting, indeed.
Folks –
For all you Redskins fans, a bit of good news.
http://www.washingtonpost.com/.....01989.html
What is surprising, however, are the caustic comments in the comments section against this decision.
They appear to believe that Dan Snyder, a fat cat, will increase ticket prices to “accommodate” hearing impaired folks under this lawsuit.
…and that it was a completely frivolous lawsuit, and that it inconveniences the “good, normal folks”. Yah, yah, it’s all already been said two years ago.
Which makes me even more impressed that the plaintiffs prevailed.. despite the tremendous amount of flak they received from many, many strangers (and even friends). It would’ve been much easier for them to do nothing about it… but ultimately, we *all* benefit from their persistence.
[Apologies to the blogger for going off topic]
A cool cat:
Thanks for the apology. I’m used to going off topic myself, so no worries. :-)