Tuesday, October 27, 2009

Executives get paid to much so stop crying

This article was very well written with lots of good information and stats on what the government wants to do. It talks about “Kenneth Feinberg being the master of compensation, (yes, that’s his title). He is trying to control the over pay to these executives with company’s that owe are government so much money. It makes no since why these executives need so much salary and expect the company to pay all personal expenses. “This is the first step that our government has taken in trying to transition from principles of compensation to actual dollars to be paid to these executives.”
I totally agree with him when it comes to pay and how much more these Wall Street dealers compared to the rest of the economy.
Huge divide between Wall Street pay and that in the rest of the economy.”
Yet after these cuts there are still a lot of extremely high paid executives out there that slip threw the cracks.
"Even after the cuts, eight of Bank of America's 12 top executives will get more than 5 million each in 2009." 
 So I agree with the writer when they say the cuts are still not enough. The next part of the article talks about how this might scare off employees and executives. I don’t know about you but I believe there is not going to be a problem to fill the job with someone less greedy. So if they try and make a fight because of this I don’t see it holding up.
The companies that are talking the cuts and their employees are likely to be ticked off as well, to put it mildly. Restricting the pay of top performers is going to start a brain drain, they warn, of the very talent they need to rebuild their business.”
The article continues with good information on how the government is planning to get there money back that these huge companies owe the government. I agree with the bonus cuts and how the government is trying to encourage, “long term performance with long-term pay.” I agree with most of these ideas from this article and believe we most take action because these huge companies do not care about anything but themselves. They will pay back the government until you give them a reason to do so, like taking the bonuses away or taking these huge perks away.
AIG asked Feinberg to approve perks, including private-jet airfares, that topped more than $1 million extra for more than one of the insurance company’s executives.”

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