"For top executives to award themselves these kinds of compensation packages in the midst of this economic crisis isn't just bad taste. It's bad strategy. And I will not tolerate it as president," he said.The problem is these companies have already been rewarded for bad behavior by the Bush administration, and by Congress in the form of $750 BILLION. And if Obama has his way, the federal government will dump another $900 plus BILLION of borrowed money into spending programs that have very little to do with stimulating the economy.
No doubt that today's move will be popular with the American public. In fact, a Rasmussen poll indicates that some 88% of Americans say that executives that receive federal TARP money should not receive bonuses. But there is a down side to all of this.
[Sidebar]If the value of your work and experience on the open market was $20 an hour and someone like Obama decided that since your company took a TARP injection you should only be paid $5 an hour, what would you do? We dare say most people would start looking to find a position that pays their market value at a TARP free company. The same thing can be said of corporate executives.
Before some of you absolutely freak out... a lender has the right to set conditions on the use of the money being lent - that includes the government. The problem is that governments are driven by polls and politics that are arbitrary in the best of times. And governments have the power to impose restrictions and terms retroactively - regardless of how arbitrary or capricious those terms may be.
[End Sidebar]
While allowing companies to pay corporate executives BILLIONS in salaries and bonuses is obscene when the very companies they lead are tanking, having government step in and mandate compensation is truly frightening and could handicap corporate recovery by making it impossible to attract top talent.
The yahoos that have run GM, Chrysler, and Wall Street into the ground can't and shouldn't be able to demand huge salaries on the open market. In fact, they shouldn't be able to demand a plugged nickel, but that's a question for each company's board of directors and their share holders. Compensation should be based on performance not mandated from Washington by politicians - many of whom are at least as responsible for the current financial situation as corporate executives.
In the long run, capping compensation for positions at any level restricts a company's ability to compete with their non-TARPed competitors. Companies should think long and hard about accepting bailout money from the federal government.
When a company gets caught in the TARP, they are no longer just answerable to their share holders but to 536 politicians in Washington that already have done too much damage to markets through ill-advised legislation and have too much power to do even more damage. Before TARP, the damage was done externally. Companies that take a TARP injection may find it to be a fatal poison that cannot be removed short of death.
28 comments:
I think it's a great idea, look at how bad a job the Chief of APD has done, but his salary keeps getting larger and larger while the safety of the city sinks to dangerous levels.
Here folks is the perfect example, this chief should have been a CEO of one of these failing banks, as he keeps getting rewarded for bad performance!
to bad GM, Ford, etc., can't make thier vehicles last longer than five years, so American's have to bail them out when we can't afford to buy one of these trashy vehicles. Funny, Toyota, Nissan, etc., didn't ask for a bail out because thier vehicles last for ever.
Your argument is pretty stupid Eye. By your logic it would be perfectly OK for these boards to award bonuses to execs just for securing these bailout funds.
You ought to stick to Count/City government issues and stay away from national politics and especially economics because its very obvious that you don't know anything whatsoever about either one of them.
I think it's hypocritical for the Bank Execs to cry like babies because they may have to get along on $500,000 per year, yet they scream bloody murder at the thought of raising my minimum wage to $7.50 an hour. Well - I OWN the banks now, boys. Get used to it. Try and scrape along on your piddling ONE HALF MILLION DOLLARS per year + whatever you put off shore. I own you.
What has the chief done thats so terrible that effects your pay? Someone should pay you, for your actually performance worth. waaa waaa waaa barely work 7 hours a day, & a free car and you still complain. Your despicable!
We may as well become socialistic one tax for all! Gas prices all the same, same medical care for everyone… Seems to work well in some European countries…
Gosh, put a darn cap on what these scumbag (CEO’s) are using OUR money for. What, bonuses? They should be on commission if they don’t produce they don’t get paid, like many a working class who aren’t making much now because of the economy!
Who in the world gives away money without some type of parameters? Oh, I forgot “The People’s Court”. You can watch all the Jerry Springer types every afternoon at 1pm.
Maybe we should get “Judge Judy” involved. I bet she’d have it solved in a ½ hour!
What is going on with SE Impact, we are going to be visiting them in a Federal Prison very sooooonn.
SE Impact? Who is their Sgt?
the sergeant in the se is the same one who shoots up his house in a dv and the case goes away...
Guess he and his team can get to know each other a little better in a smaller space? I hear they are doing some shady stuff as well.
haha nothing will happen to any of them,,,they are on the special DO NOT MESS WITH list! we need operatives like that in the organization to protect us all.
THE ABOVE POST ABOUT HOW INSECURE THE SGT IS, I HAVE A COUPLE OF BUDDIES THAT WORK FOR HIM THEY SAID HE WATCHES EVERYTHING THEY DO AND HAVE TO REPORT EVERYTHING TO HIM. MIRCRO-MANAGER LOL
his career is out the window? hes still employed and still a sergeant,,,not true at all, just realize hes untouchable!
Comon' micro manager??? THe guy who used to leave vice early to go to Graham Central to meet his LTS wife??
He is the worst exaple of (lack of) integrity and scum sucker this dept. ever had. Hell he makes Matt Griffin look good.... freaking punk,
too bad he didnt get his A** beat by a guy who could have easily (and should have) done it..
BARBOA STOP POSTING YOU THINK YOUR UNTOUCHABLE AND FULL OF YOURSELF ALL YOU ARE IS A IMPACT SGT WTF
Why are all you cops gossiping about this Sgt and the rest of SE Impact instead of arresting them if you know they've committed crimes?
he can not be untouchable unless he has pictures of the mayor with a goat--- com'on IA has a case on him, it has to pan out in time,, they've been sitting on this s**t since last summer.
good question, maybe the area commander could shed some light on what happened after the call out at the Sgts home that involved gunplay?? Eye, you got emails about this one months ago,,,, time to pony up the story
Everyone talking about SE Impact, you should try working in the SE FSB and there is drama. I don't think the Commander is respondible for the Impact Sgts behavior he lies about stuff all the time to the officers who are my friends and I know better. The chain of command doesnt know what is going on.
ommander was at the house-- so were others, Barboa's "wife" called her civilian friends and told them too -- this story has been out there for so long that it is remarkable that no one has covered it.
Ask around, there is a LOT of people who know it and want it brought to light to sink his sorry little butt.
also, Barboa, we all really have dug the "Moe from 3 stooges haircut" that you have rocked for the last decade -- punk.
leave gary alone already! he's untouchable now deal with it!
..
Karma takes awhile, be patient, the guy in question will take a fall....
in a way he already has, no one can stand him and the chick he threw it all away for betrayed him.. now his job is in jeaopardy.
F***kin funny how karma works,
Stop posting that youre untouchable barboa because we all know youre not.
WOW A UNTOUCHABLE IMPACT SGT? IMPRESSIVE, WTF MAYBE IF YOU WERE LIKE THE HOMICIDE SGT YOU MIGHT BE UNTOUCHABLE BUT COME ON IMPACT
since no one else seems to want to put up the story heres a link to one from when it happened
http://joeschmedlap.blogspot.com/2008_05_01_archive.html
CONCUR,,,,, he does actually make Matt Griffin look good by comparison
i work the se and i heard that babora was writing up his people and not backing em at all?????????? is that true cuz i work for the sgt and i wanna know how many cops put in for the se impact opening.
one would have to be desperate for the opening to put themselves in a position to support or be supported by, anyone with that sort of history of indiscreation, moral turpritude, lack of will, lack of insight and both mental and moral weakness. I would suggest that you ask around among folks who have been around MORE than 5 years. You will get an earful.
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