In the news today is the story about the White House demanding steep executive pay cuts for highly paid
executives of major corporations that benefited from taxpayer bailout monies. Just wondering what YOUR take on this is.
Here's mine:
True, many of the bonuses and salaries paid are excessive by any reasonable standard. But I fear the real motivation for this action is the favor the politicians hope to garner from voters by playing 'hero' on this issue..
Let's look at the big picture:
#1, the monies saved by cutting salaries and bonuses will undoubtedly amount to several untold millions of dollars. Significant coin? Yes, to be sure. But still, it's like peeing in the Pacific when compared to the deficit and bailout monies already doled out.
#2j, I don't feel the top executives who have their pay packages decimated will just stand by and take it. They'll just find some other employer willing to pay top dollar for top talent, and my bet is that there are plenty of companies who would hire this top talent in a heartbeat. So the net result will be that the companies we taxpayers just bailed out with our hard earned tax dollars will fail as a result of losing top management talent. After all, the recipe for business success is being managed by top people, not second-class management talent....right?
What do YOU think?
