There is a commentator on C-Span Washington Journal now

[whathehell]

who is poo-poohing the idea of curbing Executive Pay as it relates to the Bailout..Questions like "how could you standardize Executive pay across the board and the old "what you have to pay to attract "talent" in the United States is being mentioned...The moderator, Gretchen, seems to be agreeing with him.

Fact: In the 1960's the average CEO made SIXTY times more than the average worker on the floor...By 2000, the proportions had changed. The average CEO now makes somewhere between 300 and FOUR HUNDRED times what the average worker makes...This kind of stuff makes me crazy.

:mad:

[ThomWV]

1. The Moderator's name is Gretta, not Gretchen.

[whathehell]

2. Whatever...

but thanks for your substantive feedback!

[tkayj]

3. The problem is ...

...that many, if not most, of today's CEOs are part of an inbred crony system. They all know people who know people, and that is how many get their jobs. And yes, they have an expectation of a certain stratospheric salary, because they are 'entitled' to it by virtue of the fact that they 'are somebody', and they 'have connections', etc.

The truth is that there are many intelligent and accomplished men and women out there who have the actual intellect to do an excellent job, at a reasonable salary, but they don't have the connections to get the job. I'm talking about people who would be delighted, even honored, to have a job that paid $1-2 million a year, not $10-20 million a year, plus bonuses.

Look at the CEO of GM. He's an idiot, who has done a horrible job; and he has given himself raises each year, even as the company lost more and more each year.

Let Big Oil bailout the auto industry. They are the ones who benefited from the auto industry's focus on building gas guzzlers over the past decade. They are the ones who indirectly benefited from Bush's "tax break if you buy a gas guzzling SUV".

Furthermore, my experience owning an American-designed car vs. a Foreign-designed car has been absolutely dismal. If 'The Big 3' don't start focusing on more reliable and more fuel-efficient designs, then they can go down as far as I'm concerned. Yes,yes...that means lost jobs, but let's replace those jobs with jobs making American-made Foreign-designed cars, or American-made Green cars. We can't pump any more money into "the same old thing". If we give the auto industry any money WITHOUT CONTINGENCIES, then it's money down the drain.

...oops, I got a little off topic there...

[whathehell]

4. I am in complete agreement with you regarding the need for contingencies

as well as letting Big Oil pay for the Bailout.

[Citizen Number 9]

10. Interesting theory, wonder if it's correct...

Truth is that there is a shortage of people who have what it takes to be a good CEO, particularly for a very large corporation. It's not about cronyism or connections. And, it's not just about intellect, but includes experience, temperament AND, not least of all, motivation. This attitude reminds me of all the folks who tell you "I could have been a doctor, but I couldn't afford to go Medical School". Yeah, right.

That being said, corporate governance could be changed to make the CEO's job more humane, so we could have more types of people who might be successful as a CEO.

PS - CEOs do not "give themselves" raises.

[tkayj]

11. Well I don't have a business degree...

...so I stand slightly corrected. However, there are, I am sure, people who are moving up within any given company, who have developed the experience, etc. who could indeed, if given the chance, do the job, do it well, and at a lower salary expectation.

True, you have to have the motivation to strive for, and excel at, certain positions. A good example is The Presidency of the U.S. (CEO). With the number, and degree of, constant, high-level stresses upon you, from different directions, and all with differing objectives and perspectives, many simply would not want the job. Many would not be able to withstand the job. Point well taken that fewer are suited to be CEO than intellect alone would imply.

Unfortunately, the mantra of today's Corporate America's CEOs has been exposed as "Me first, 'corporate well-being' second". They have continued, en masse, to receive bonuses (from whomever makes that decision) even though the company is going down the drain. And who DOES make that decision, and based on WHAT information?

And what's so inhumane about a $multi-million salary and another $multi-million in bonuses? Poor Baby, required to do too much work for the salary? Then stop being such a greedy cow, and hire more people right under you to whom you can delegate some of the work!! Uh oh.... then you'd have to forgo some of your bonus to pay more salaries...

(Then again, maybe if you had more eyes, hands and feet on the ground your company wouldn't be on the brink of bankruptcy, the pension fund wouldn't be insolvent, and millions wouldn't be unemployed.......Oh who cares?!! You'll be a multimillionaire anyway.)

[tkayj]

12. My second, and more practical, response is this.

If I'm the head of my household, and I can't pay the mortgage, I don't tell my children that they won't be able to eat for the next few months and simply go on buying my favorite luxuries up until the day that the eviction notice is posted on the door.

[bigbrother05]

5. The tax code regulates business deductions for meals and cars

If a company pays above the established allowances, it comes out of their profits. Regulation of max deductions for executive (or any other) compensation would make them pay their way without being underwritten by the taxpayers. If CEO/exec pay & bonuses were coming directly from the dividends, shareholders would be a lot more interested in how the "hired help" are being paid.

Not being able to deduct $200K "executive retreats" would help too.

[DoctorMyEyes]

6. None of them are all that "talented"

Judging by the fix they've put us in. And as far as "retaining" and "attracting" - anyone who still has a job in the financial industry should be grateful they still have a paycheck and shut the fuck up. They have no authority to tell us "how it's done" after they've screwed everything up so spectacularly.

[whathehell]

9. Agreed..Totally. n/t

[Wilber_Stool]

7. This will have you

pulling your hair out. It appears that none of these people had the slightest idea of what what was going on.

The End of Wall Street.

[whathehell]

8. Thanks for that link. n/t