Bailed Out? Take A Pay Cut10.22.09
This really should’ve been a no-brainer. And it should’ve been part of the whole deal given to the banks as part of the bail out package.
All loans come with a price. There are established ground rules for repayment including interest rates, monthly due dates, and penalties for late payments, at the very least, for a normal loan between a lender and a borrower. The financial bailout between the government and the banks should’ve been no different.
Instead, just now, the Treasury is ordering that firms bailed out by the government must halve their salaries. Why wasn’t this agreed upon at the outset? Why now when it looks like the government is meddling in the private sector yet again?
Better late than never, I suppose, but this almost seems like it’s a punishment as opposed to a stipulation of the original loan, when it would’ve been much more acceptable and come across less of a politically-motivated move to appease a growing number of disgruntled, unemployed Americans who find it insulting that a company given a handout gives themselves high salaries and bonuses.
Not that these executives are really hurting financially. The CEO-to-average worker ratio has grown exponentially over the past three decades to an almost unsustainable level. Much like house prices became ridiculously inflated, the salaries of these executives have gotten out of control, as well.
It just would’ve been nice had this all been part of the plan originally since it’s become more and more clear that we really did give these corporations boatloads of money with virtually no strings attached.