Now That's Pay Comparability
Here's John McCain in remarks yesterday at a campaign event in Scranton, Pa., on the proposed federal bailout of the financial services industry:
We cannot have taxpayers footing the bill for bloated golden parachutes like we see in the Lehman Brothers bankruptcy, where the top executives are asking for $2.5 billion in bonuses after they ran the company into the ground. The senior executives of any firm that is bailed out by Treasury should not be making more than the highest paid government official.
That would be $400,000, by the way. That's what the president makes these days.
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Thats interesting just the other day McCain said Fiorina who was fired from Hewlett-Packard as CEO deserved her roughly 26 million dollar parachute. I guess it matters who's friend is on the other end of the chute and who you advise in the election! Maybe he can loan her a car and home.
Dah Huh Posted Tuesday, September 23, 2008 8:59 PMSenator McCain may have solved two issues with this statement. The Feds, especially Active Duty military, have a huge pay and COLA gap. Private industry salaries are too high at the top. Any company receiving government welfare must go to the government salary structure, starting at the top. To add a little culture shock, start them out on the GS schedule, then transfer them to the new system.
anthony weishar Posted Wednesday, September 24, 2008 6:36 AMWhy should top executives receive anything at all if their companies failed on their watch? They should suffer the consequences of their failure, just like any small businessman or woman whose company goes belly up. They are not gods and should not be treated with any more respect than the next guy.
Richard, Tulsa Ok Posted Wednesday, September 24, 2008 8:27 AMAnd he is overpaid at $400K.
Linda Sullivan Posted Wednesday, September 24, 2008 8:29 AMI completely agree, however I would limit what they earn to SES scale. If they want a government bailout they should work under the same conditions as government employees, that includes travel and other perks. They shold be able to get by on the same travel and per diem allowances that the rest of use have to follow.
A Faceless Bureaucrat Posted Wednesday, September 24, 2008 9:07 AMWhy give them anything...if there were any justice they wouldn't need the money sitting in jail.
P.O.'d Posted Wednesday, September 24, 2008 9:44 AMStill too much.
Michelle Posted Wednesday, September 24, 2008 10:36 AMThe top executives should be "pink-slipped" and removed from their offices and buildings by the security guards immediately, just like any other employee who commits such criminal acts. They shouldn't get one dime for their greed and incompetence.
Don M. Posted Wednesday, September 24, 2008 10:36 AMI get a feeling of pandering rather than a commitment form Mr. McCain's statement.
It might mean more if Mr. McCain stated this more forcefully, or stated it as a campaign promise to the American people. The same people who are now being asked to pay for the sins of these greedy and incompetent financial geniuses.
I, for one, am a believer that there should be a significant punitive addendum added to the overall bailout. How are any of the disaster protagonists in the senior financial ranks (both public and private) taking responsibilty for this travesty on a nation?
US Posted Wednesday, September 24, 2008 10:59 AMJohn I'm with you 100%, can't do the job than you don't deserve the $$ that's capitalism
dan ketter Posted Wednesday, September 24, 2008 11:01 AMHey folks, I am with you all and with Secretary General Nobama and Party Chairman McLame. Now, you all remember that it was this Congress that refused to even take up a bill to require that corporate salaries be submitted to review and approval by Stockholders don't you? That one will hit the news again - NOT. Its all talk and an excuse for - again - this Congress - to delay, negotiate and expand their power, while we lose millions.
Crazy Larry Posted Wednesday, September 24, 2008 12:05 PMTying the pay for executives in private companies to the pay for government officials is ridiculous. Private executives make large salaries because they take risks and earn profit for their companies. Government officials are not generally known for their risk taking. Government officials get ahead by being risk averse. It's nothign more than an endurance contest in the government. The guy (or gal) who hangs in the longest gets the highest pay. Except of course for the elected officials, whose pay is in no way tied to performance, but is a flat salary regardless of how well or how poorly they perform their constitutional obligations. Corporate executives are agents of the corporations and owe a fiduciary duty to the corporation. When the corporation fails, the top executives should get what is due them under their employment contracts, unless they have violated their duties as agents of the corporations, in which case their employment contracts should be declared void. If the Board of Directors approved compensation packages for these executives that did not tie pay to performance, then shame on the Board. As the caretakers of the corporation, they should be the ones facing the difficult questions from regulators.
Robert Bragaw Posted Wednesday, September 24, 2008 1:10 PMThese CEO's can't do it alone. Each CEO is only as good as the people who make it happen are. How far down the chain of command do you expect the "Golden Parachute" goes. I know! There is no incentive for these top executives to succeed as they will get paid regardless.
Alan, Orlando, FL Posted Wednesday, September 24, 2008 1:29 PMRobert: What's wrong with tying the pay for executives in private industry to what the government executives makes in salary for those firms that we will bail out? They may have been taking a risk initially, but it's the American worker who is now at risk. Americans who are at risk of losing their homes and retirement income. Do your homework, Robert. Check on the bonus packages OFHEO authorized be paid to Freddie Mac and Fannie Mae's chairmen during the time they were investigating them for making poor investments and putting the housing market at severe risk. I've worked for the Government for nearly 30 years. I'll be very angry if I have to delay my retirement because the bail out won't affect the "financial wizards" life style.
Fran Posted Monday, September 29, 2008 8:02 AM