Posted on 02/04/2009 10:17:39 AM PST by jveritas
Obama announced an executive order to limit the salary for CEO of bailout companies to $ 500,000 a year. Besides that this is the scary socialism on the march the question from business perspective is what type of CEO would a company get for $ 500,000 a year? The answer to that is very simple. They will get very incompetent CEO’s who are even much more worse than the current CEO’s who are running these bailout companies.
I don’t know the answer to the “what kind of executive” direct question.
I do know that the Law of Unintended Consequences is still valid.
Wonder how it will all work out? Should be interesting.
These firms who chose to tap into the bailout funds could most likely lose their CEOs to other companies since they now work for the government. Chock up another failure to the so-called Stimulus Plan. Then again, some of these CEOs weren’t worth the paper their checks are written on.
The differences, companies like Apple that do this, freely choose to do this and are free to create compensation systems based on performance. I believe Jveritas is referring to companies forced to comply in this by the government, thus, they will also be over regulated on all types of compensation, not free to create a performance incentive based plan.
The underlying assumption here is false. The incompetents who have run the entre financial system to the ground and have caused a global meltdown don’t deserve any ore than what they are paying their bank tellers.
As new govt. employees (which is what AIG, Citi, and other TARP-1 recipients are), they are earning more than most current govt. employees.
They can do what they want with their salaries and bonuses after they repay their loans (and interest) to the taxpayer.
The companies don’t have to take the bailout money...
Barney Frank?
About the same quality as a $500K free agent starting pitcher would be to a major league ball club.
$66 MILLION DOLLARS for a baseball player is cool, but a CEO, responsible for thousands of jobs and billions in revenue is now BAD.
Welcome to Nicolai Carpathia’s BRAVE NEW WORLD...
Sure.
Now define “bad guys”.
I predict the country will soon see a dramatic increase of graft, bribery, hush money, and payoffs. This will increase again once we pass socialized medicine. We’re going to grow increasingly similar to other countries in the world where people pay under the table to corrupt cops, teachers, doctors, licensing agencies, etc. for the ability to get around the system.
Hard to believe that's possible in some of these cases.
“If I made decisions based on a ouiji board I’d do better than the GM execs”
Perhaps...
But can you write a MEMO as well as these people do??
Congress DID NOT create the non-CRA-mandated sub-prime lending or the toxic derivatives/instruments that were the primary reason behind this meltdown.
The government played its useless bit, as governments always do, but this crisis is primarily the making of the modern-day robber barons.
As Salvemini said, “It’s fascism when profits are privatized and losses are socialized” [paraphrase].
I frankly, do not care.
First, most of these people voted for Obama. He also had several billionaire types endorse him.
Second, Republicans should not whine about this, considering a Republican President opened the door for the implementation of a centrally commanded economy.
Sow the wind, reap the whirlwind.
Like Steve Jobs and his $1.00 per year salary. Everything he earned in incentives, and boy, did he do a fantastic job. But as soon as government regulates salaries for “them”, remember that YOU are next. Watch your $100k be lopped to $35k at the whim of this Socialist prick.
I do not disagree that the Clintons started the ball rolling, but it was greedy and short-sighted leadership on the Street that made the situation worse.
Isn’t this how we got the accounting scandals a couple of years back? CEO’s were taking stock options instead huge salaries, because it was taxed at a lower rate, then cooking the books to get the most out of those options? I think Obama is sowing the seeds of the next crisis.
My guess is there a plenty of competent people in this country who would love to ‘settle’ for a job making them $500k per year. Hopefully current CEOs of failing companies won’t be among them.
Let this be a lesson. If you relegate yourself to be a warden of the government, you’ll get treated like a serf.
The real problem I have with Osama’s communist takeover is that some of these banks were forced to take bailout money (see Wells Fargo). So the government has now nationalized these companies and are now making decisions instead of the owners-which are the stockholders. Your company may be next.
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