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2/01/2009

Colossal pays and bonuses to go?

Is it just a sickness? With all the big financial institutions and corporations asking for millions of dollars from the govt to prevent bankruptcies, the CEOs in Wall Street are still paying themselves crazy. They take it as their dues, their just rewards for bringing in big businesses. Gary Goldstein, President and CEO of executive search group Whitney Partners, has this to say. 'It has become very corrupt...I've watched it over the years and everyone was taking their piece of the pie...and not paying attention to the end game, which is the little guy who ends up with all of these securities on their retirement accounts.' If these people have created real value or wealth, no one is going to protest. Have they? Their ingenuity in creating false wealth, doctoring of accounts, false businesses, supported by all the regulating agencies and the civil servants, have led to this world wide financial meltdown. And the best part is that they don't care and are continuing with their taking habits. It is part of the system, authorised, no fault, no crime and no guilt. Obama is furious and so are the Americans. They want to stop it but can't. The people are helpless while those in position to take continue to take. And the value of the stocks of many corporations hit bottom. No sweat. It is the small guys that are holding to the stocks thinking that it will see them through in their retirements. It is time to review the fat bonus scheme. It is the scheme of the thieves in power, to fatten their own pockets. Corporate honchos should tie their bonuses to the performance of the company as well as the value of their stocks. This must be fundamental to the health of the corporations and the wealth of the shareholders and the viability of the stock market. If stock prices are allowed to be manipulated by big funds and corporations do not care a dime whether it is going up or down, or if it is $20 or 20c, then the value of the stock is worth only the value of the paper it is printed. It is worthless. At the rate it is going, the stock market industry across the world will hit crisis situation just like the banking industry. Small investors will end up holding worthless pieces of papers. The compensation of corporate managers must be tied to the performance of the companies and stocks. This will ensure that they will bet their future on the well being of the corporations and stock value. Of course the flawed stock market mechanism must also be revamped to prevent massive sell down of stocks regardless of the value of the corporations. There must be responsibility and accountability! At the end of the day, when investors found themselves holding hoards of worthless papers, someone must be hanged!

5 comments:

Anonymous said...

'The compensation of corporate managers must be tied to the performance of the companies and stocks'

Fine, but what is there to prevent unscrupulous people like Madoff from manipulating the accounts to show bigger profits? What about Satyam? Depend on the auditors?

If compensation is tied to performance, expect to see more Madoff and more Satyam in years to come. Nothing can defeat the ingenuity of human greed.

Lost Citizen

redbean said...

hi lost citizen,

the whole system needs to be revamped with more accountability not only from people like madoff and satyam but also from the administrators and regulators. they need to be hanged too if they don't implement a sound system and are caught sleeping. the auditors too cannot think that they have no responsibility, the directors etc etc.

Anonymous said...

Guantanamo will soon be history for terrorists.

Suggest Obama use the facility to lock up all the wall street crooks, terrorists of a more dangerous kind.

Anonymous said...

More enforcers do not mean less crooks.

And what about

the fact that some are born evil while some are incorrigible?

patriot

redbean said...

yes, the guantanamo is a great facility that can be put to use. and patriot, can't say there will be criminals and more criminals.

just need to build more facilities to keep them in. otherwise no need for changi right?