Salary Freezes for Bailed Out Banks

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  1. #11

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    I am not a fan of government intervention like that as it looks like a knee jerk reaction rather than a well thought out response that comes from consultation with these corporate welfare bums.

    What a great quote in this story that is emblematic of the sense of entitlement to masses some of money for creating a lot of paper wealth that has simply disappeared. What was it US$600 billion that has just evaporated as there were no assets behind the paper wealth?
    ""We've always been a society where extraordinary work led to extraordinary payouts," said Alexander Cwirko-Godycki, research manager at Equilar Inc., an executive compensation research firm."

    I wonder if Cwirko-Godycki means these guys:

    Last Recorded CEO Compensation (US$) – Broken Companies

    Merrill Lynch $29,000,000
    Bear Stearns 40,000,000
    Lehman Bros 34,000,000
    Fannie M $14,000,000
    Freddie M $18,000,000
    AIG $15,000,000
    Ford $23,000,000
    GM 23,000,000

    Source: Executive Paywatch Database

    Just like a society can get breed a group of lazy, indolent people who believe that welfare is their right and demand it be given even to able bodied people who can't be bother to work, so has this sense of entitlement become part of the mantra of these corporate executives receiving compensation beyond any value they created.

    Governments in the western world reacted to this by simply cutting them off the dole.

    There used to be in corporate compensation some acknowledgment of the ratio of the top salaries to the lowest salary levels of the knowledge workers in the business but this has been shamelessly abandoned by these corporate welfare bums.

    I don't care how much mayonnaise you use on this topic, you can't make chicken salad out of chicken crap!

    Last edited by Football16; 05-02-2009 at 10:47 AM.

  2. #12

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    Quote Originally Posted by LJ_ian:
    "This is America, we don't disparage wealth. ... What gets people upset, and rightfully so, is executives being rewarded for failure. Especially when those rewards are subsidized by U.S. taxpayers,"

    its almost like Obama is answering to the discussion on our previous thread about Morgan Stanley CEO
    He's actually my half brother (and reads all my threads) but my mum asked me to keep it secret so don't tell anyone.

  3. #13

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    like said, all these rules will end up screwing the common shareholders alot more than the taxpayers:

    "If those firms wanted to pay their executives more, they would have to use stock that couldn't be sold until the bank had repaid the bailout money. The rules apply only to the future, not to banks that have already received bailout money."


    Goldman has already 'trying' to pay back the treasury loans. As paraphrased from CNBC, there are top executives leaving the companies that have received TARP.. whether is it due to the compensation limitation we won't know.. but likely it is a contributing factor.


  4. #14

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    Quote Originally Posted by SpecialK:
    So I guess the good execs will just move to HK or the Middle East where they will get paid in line with their colleagues. Leaving the crap ones behind to try and turn things around.
    The good ones may be working for a company still making money and/or not receiving bail out money ... so then this is not applicable to them. They may not need to leave the US ...

  5. #15

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    Communism, Shri?? I find it rather Reaganesque (-ite?), along the lines of "I am paying for this microphone". You don't need the money, give out bonuses. You need my money, I get a word in how you use it. If it indeed was _my_ money, I'd probably not put up such a straight number for everyone. Maybe I'd rather require them to publish name, function, and reason of everyone whose bonus make their compensation exceed the 500K, and subject it to government approval. But then, it isn't my money

    SpecialK, you prove once more that you don't need to invent ipods to live in a reality distortion field. Why again do the banks need government funding? Because their managers are doing such a great job??


  6. #16

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    Quote Originally Posted by MommyTo3:
    The good ones may be working for a company still making money and/or not receiving bail out money ... so then this is not applicable to them. They may not need to leave the US ...
    do you understnad how big banks are ?
    how many different type of businesses and how many different types of people in the bank ?

    why we are not seeing citic pacific retrenching all the staff because the company made a 8bil HKD trading loss ?

  7. #17

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    Quote Originally Posted by MommyTo3:
    The good ones may be working for a company still making money and/or not receiving bail out money ... so then this is not applicable to them. They may not need to leave the US ...
    Dear Sir,

    I am applying for the position of senior executive with your bank. I have many years experience in receiving squillions of dollars in compensation. In my last employment I totally ****ed it up leaving it billions of dollars in debt and requiring a government bail out. Due to only being able to earn half a million dollars per year on which it is not possible to have a reasonable life I am seeking employment with your bank. I see you are not yet receiving a government bail-out. I am sure with my help and proven abilities I will in a short period be able to bankrupt your company so that it too can receive all this lovely money.

    And Freeier, I know its not really like that - there are good executives in shit banks - I'm just joking.
    Last edited by hullexile; 05-02-2009 at 11:02 AM.

  8. #18

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    Quote Originally Posted by er2:

    SpecialK, you prove once more that you don't need to invent ipods to live in a reality distortion field. Why again do the banks need government funding? Because their managers are doing such a great job??
    ER and you prove what an intellect you are, yet again. Of course, in your world, they were all bad. But where I come from there are plenty of execs doing good jobs, making money not losing it. If you want to keep those types of people you actually have to pay them fairly and that means commensurate with what their international colleagues are earning to stop them moving overseas.

    What I don't understand is why you think any of them should even be kept in their jobs if they are all so bad. Wouldn't it make more sense to fire the lot of them and perhaps employ all the talking heads on this board to get things going again?

    You have such a simplistic, black /white view on things. Life is just not like that.

  9. #19

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    Quote Originally Posted by shri:
    Welcome to the Peoples Democratic Republic of America.

    http://biz.yahoo.com/rb/090204/busin...bama.html?.v=9
    What??? The salary of highly paid bankers and managers will actually be related to work performance?

    These people will actually have to start working, instead of just playing golf???

    Communist, communist!!!!!!

    It seems to me that asking tax payers to pay a bonus to bankers who obviously are incompetent (or they wouldn't need tax payers to bail them out) is precisely communism. So we have capitalism for the poor, and communism for the rich. This is fine, isn't it? While asking rich people to limit their greed in a moment of crisis isn't fine. Right?
    Last edited by Safran; 05-02-2009 at 11:17 AM.

  10. #20

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    Quote Originally Posted by SpecialK:
    ] Of course, in your world, they were all bad.<snipsnap>
    You have such a simplistic, black /white view on things. Life is just not like that.
    Not at all. But if you want to be paid solely and exclusively on your very own performance, then run your own show. If you prefer to work for a company who is so messed up that it needs government money to survive (fancy that? no bonus, not even a job, if it wasn't for taxpayers money), then you might suffer too.

    Btw, my RDF remark was more aimed at your "then they go to the middle east and HK where they get their bonuses".