...for executives at Toyota, Honda, Ford, and banks not participating in the TRAP ('oops,' TARP) program. Why?
The Treasury Department, headed by admitted tax cheat Tim Geithner, is deciding to cut the pay of top executives at GM, Chrysler, and banks which have taken TARP money by about half. Now I would tend to agree that the inbred nature of executive compensation probably results in exorbitant amounts of money going to the "good haired tall executives," as Scott Adams would put it, but the fact remains that every once in a while, there are things that only a seasoned executive can do.
You would figure that the owner of these companies would figure out that cutting everyone's pay would be a bad decision, as you've just told the ones who can get hired elsewhere that they'd better do so while the getting is good. However, if a man can't figure out Schedule SE, then probably he can't figure this out, either.
Hot Gear Friday: The Swiss Army Guitar
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The word “iconic” is overused these days. I try to avoid it. It’ll be hard
in this next bit. If you are not a guitar player, and someone says
“electric gui...
15 hours ago
1 comment:
I heard an interviewee on NPR yesterday point out that when another sort of business makes a profit, the acceptable use of it is to plow it back into physical resources to improve the company's ability to deliver its goods or services. But in a bank or investment firm, the working capital is people. So, these bonuses actually constitute a form of capital reinvestment. He wasn't really defending the practice so much as explaining why it's not quite as indefensible as the average person thinks, but I find the argument completely satisfying, assuming it takes place in the context of really making sure the people you're paying are returning value -- which it doesn't always, of course, hence your point on tall good-hair guys.
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