In an article in their Politics section yesterday that discussed the so-called “salary caps” for executives, Foxnews.com reported:
“Irv Becker, a compensation authority at the Hay Group, a global management consulting firm, said bonuses and other incentives account for a major portion of the compensation of financial industry executives.
“The concern that we have is the unintended consequences,” Becker said. “You’re likely to be driving some of these talented executives out of the industry.” “
‘Scuse me? “Talented” is the last word I’d use to describe the executives who created this mess. And since Hay Group had a large hand in creating these much-abused “compensation strategies”, is it any wonder they now take issue with them?
The problem is the caps go beyond CEOs and some banks, that are fine, were also arm twisted to take TARP money..They did not want it, BUT because their balance sheet were fine the Gov felt they would be better to spread the money around.
So yes there are many talented Executives out there as well as bank finance folks that will be caught in this that weren’t a part of it….What about those HUGE bonuses paid out to the heads of Fred and Fan that were given on fake profit reports?? Do they not count? And if not why not?
Call this painting everyone with the same broad brush.
So now my question is How do congress critters come into office at a job that pays 149K a year and leave as multimillionaires? They fly around in private jets, take trips on the tax payer dime, when do we take their perks away when they screw up?