Saturday, December 19, 2009, 9:07PM ET - U.S. Markets Closed.
It still pays to run a bank… even if yours was one of those that needed a government bailout. The top five execs at ten of the top 20 TARP banks have seen the value of their stock options (granted at the depths of the crisis) grow nearly $90 million, as stock prices rebounded in the last year, according to the 16th annual report on executive excess conducted by the Institute for Policy Studies.
True, CEOs of TARP banks DID make a third less after the government rescue, but that's still 37% more than the average S&P 500 company boss. "It erodes confidence in the economy and in democracy," says John Cavanagh, director at the left-leaning organization.
And while these financial firms were facing Armageddon, possibly as a direct result of the boss's incompetence, the top 20 financial firms that received bailouts "slashed over 150 thousand jobs," Cavanagh notes. "You'd think in that climate they would be a little bit more humble in terms of their income."
Cavanagh has a couple of suggestions to bring salaries into line:
This is the way the corporate model has evolved. Call it anything, a cabal, a nobility, an oligarchy, the captitalist system has created an elitist group who run the show. Wealth, or what most define as wealth, is concentrated more and more into the hands of this elite, and with the full cooperation of the national government.
Agree! US is the only country allows CEO steal meney from investors. Japan allows CEO to collect 10x salary of average worker
Huge salaries continue to increase for the rich, pro-athlete's and overall scammers, while the middle class (the new poor) salaries are either flat, falling or being eliminated. Does anyone see anything wrong with this picture? Anyone? LOL
"only firms that have a ratio of 100 to one (of CEO pay to average worker pay) or less should get government contracts." --- what if they are the lowest bidder with the best reputation? Do we say the taxpayer should foot the difference / the gov't should overpay just because CEO compensation was out of compliance. Slippery slope people, slippery slope.
Is there still a drop of justice in this world?? The entire banking model should be demolished!! A fair model of deposits and lending should be invented.
These morons are taking up to 90% of companies revenue .... tell me their talent is worth that much. Leaving shareholders , workers and tax payers with nothing. Talent .... ha,ha...... I'm an engineer ar a high tech Co. Come here I'll show you talent.
Is there still a drop of justice in this world?? The entire banking model should be demolished!! A fair model of deposits and lending should be invented.
What talent? These Morons couldn't pour piss out of a boot if the directions were on the heel.
Congress + Money = Corruption! Check this website out! http://www.larryelder.com/congress/congresscrooks.htm. It's not bias (well about Congress...) Democrats and Republicans alike.
Sell your stocks and bonds, take most of your money out of the financial institutions, get some land in the country, quit your job, move away from the city, drill a well, plant yourself a garden, cut some wood for the stove, then just kick back, relax, and watch the government bankers go bust. There's no need to wait for the next "election", either. If you have even just a little money, you can be free anytime you decide you want to be. If you have no money, you're already free.
"GREED, FOR LACK OF A BETTER WORD..WORKS" (WALL STREET) AS LONG AS THE GOV'T IS AROUND TO PICK UP THE PIECES WHEN WE CEO'S FAIL, THAT IS --- WHAT COULD BE BETTER THAN CAPITALISM ON THE WAY UP (THANKS TO STACKING THE BOARD WITH ALL YOUR GOLF BUDDIES) SUBSIDIZED BY SOCIALISM ON THE WAY DOWN??? AT LEAST IF YOU'RE A CEO OF A BANK, THAT IS. "STUPIDITY IS LIKE NUCLEAR WASTE - YOU DON'T WANT TO GET ANY OF IT ON YOU". (DILBERT)
If you can prove you're bringing that much in the door, fine. If not, pay it out in dividends or put it back into the business to help shares grow in value. Its their money, and that presumption needs to reign in boardrooms.
I am on an edge, I hate the greed, but I hate gov't too. My outrage is that they seem to one in the same. The difference is the banks tell you we dont care about you as they bleed you dry where the Gov't fills you with "happy talk" as they bleed you dry.
Simple: TAX the f**k outta them. Nail em with a recovery tax. 70-90% :)
Agree no bank CEO should make more than the President of the United States $400,000.
Can You guess which organization this is? NBA or NFL? 36 have been accused of spousal abuse; 7 have been arrested for fraud; 19 have been accused of writing bad checks; 117 have directly or indirectly bankrupted at least 2 businesses; 3 have done time for assault; 71,repeat ; Cannot get a credit card due to bad credit; 14 have been arrested on drug-related charges; 8 have been arrested for shoplifting; 21currently are defendants in lawsuits, And 84have been arrested for drunk driving In the last year Can You guess which organization this is? NBA Or NFL ? Neither, it's the 535 members of the United States Congress!!! Now no wonder why our GREAT country is so screwed up! VOTE THEM OUT!!!
If shareholder thinks the company's CEO is stealing their money, why they continue to invest in that company? I would rather a major corporation's CEO makes millions then an mid-night talk show host. But hey, if someone willing to give them that kind of money for their job, why would any one else complaining about?
At a company level I think the shareholders should be able to have more say in the compensation of a CEO. I know I would vote against ANY form of bonus payment. From a national point of view, I think there should be efforts to stop people bcoming "super wealthy", and for this I would advocate a 100% tax on personal income over a certain level (0.5 Mill, 1 Mill). Although this would not help the government tax take directly, it would force companies to reinvest money back into the company (employing more people, buying more resources, investing in other compaines) or paying it out as dividends to shareholders, thus improving the money flow to the less wealthy.
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Yahoo! Finance User - Friday September 04, 2009 09:36AM EDT
They make Al Capone and Dillinger look like choir Boys.. the only thing worse then them in Congress that does nothing about them.