$500-Grand Ain’t So Bad02.04.09
President Obama has put a salary cap on Wall Street execs at $500,000 and any bonuses they receive will be in the form of stock that can’t be sold until the taxpayers get reimbursed for their generous handout bailout.
Not only are some of these execs making multi-million dollar salaries, they’re also getting multi-million dollar bonuses all the while their corporations are requesting government financial assistance. Unreal.
I get that these CEOs function something like NFL head coaches. They’re the figurehead of this big entity and they get all the credit when they win and take all the blame when they lose. Because of this precarious position, they get contracts of guaranteed money, so even if they suck so badly that the team goes, say, 0-16, the head coach can be fired yet still receive either the money left on the contract or perhaps negotiate a buyout. (I’m sure there are other options since I am not, nor do I claim to be, a contract lawyer.)
Either way, once the coach inks that deal, he’s paid. And of course the head coach wants to win just like the executive of CitiGroup wants to increase the value of the company’s stock. At the same time, there’s no real penalty if they don’t. A CEO tanks an entire corporation, he still gets a huge payday even though his shareholders could have lost fortunes based on his ineptitude.
I guess my questions are these:
Whatever happened to being compensated according to the quality of your performance? Why are these select few group of people somehow outside the realm of responsibility than the rest of us? And, of course, why are these people the ones with the power of affecting so many other people’s lives and money? Shouldn’t this be the group LEAST likely to get rewarded for failure?