SLASHING EXEC PAY Some experts see 'b...

SLASHING EXEC PAY Some experts see 'brain drain' from bailed-ou...

There are 14 comments on the Lowell Sun story from Oct 26, 2009, titled SLASHING EXEC PAY Some experts see 'brain drain' from bailed-ou.... In it, Lowell Sun reports that:

The Obama administration's decision to cut the pay of top executives at companies on taxpayer life support will help quiet the popular outrage over excessive compensation.

Join the discussion below, or Read more at Lowell Sun.

What brains

Waltham, MA

#1 Oct 26, 2009
Let's see, if we restrict executive pay to only millions of dollars instead of the hundreds of millions they're used to, the geniuses that ran these companies into the ground and laid off all the workers are suddenly going to go away?

What's the problem there?
nnm

Mattapan, MA

#2 Oct 26, 2009
oh boohoo the crooks are abandoning ship..the only talent these bums have is at stealing
Bagdad Harry

United States

#3 Oct 26, 2009
So should we limit the pay of top athletes as well?
Were should we stop?
Should the government just say what everybody will get paid for whatever specific job they fill in the society?
That is way beyond slippery slope towards socialism...
that more like jumping off the communism cliff!
Bagdad Harry

United States

#4 Oct 26, 2009
slope is not a word that should be considered bad...
it is another word for incline...
slippery incline just doesn't have the same appeal...and after all how is slope offensive?
PC police run amok!
DJ A

Jefferson City, MO

#5 Oct 27, 2009
Popular outrage doesn't change the Constitution without an official amendment. If somebody is overpaid, that's the business of the boss, board of directors, and owners. Pay czar seems a euphemism for "hitman for the Fed."
oplease

Redwood City, CA

#6 Oct 27, 2009
last I checked, bagdad harry, the gov was not subsidizing and bailing out sports teams, so your argument is specious at best.

call it "swamp drain" if it makes you feel better. If these guys are such geniuses, why did their high flying companies end up needing a gov bailout? They are valuable b/c of their connections, who they play golf with, etc.

This seems like a great way to introduce the executive class to the idea of outsourcing mgmt. I'm sure there are tons of highly educated people in other countries where you could hire an entire executive staff for what we pay for 1 bloviating US executive.
Amused

Newton Center, MA

#7 Oct 27, 2009
DJ A wrote:
Popular outrage doesn't change the Constitution without an official amendment. If somebody is overpaid, that's the business of the boss, board of directors, and owners. Pay czar seems a euphemism for "hitman for the Fed."
Except, after the bailouts, the taxpayers are the shareholders, of at least a substantial minority share, or possibly a majority share. As a shareholder, although one against my will and better judgment, I absolutely object to these executives receiving obscene paychecks for stunningly incompetent work. These firms want a bailout with no strings attached, so that having gambled away all their stockholders money with excessive risk taking, they can continue the game with our money. This should not happen. Number One, if the Obama administration had any courage at all, the first string that should have been attached to the bailout of "too big to fail" institutions was a plan to break them up into smaller institutions that can have their failures taken care of in bankruptcy court, without any taxpayer funds in the future. As it is, these "too big to fail" institutions have us over a barrel, and we can expect the bailout option to be replayed in every financial crisis in the future. Second, the right to re-structure executive pay should have been an explicit provision in the bailout documents.

I'm not worried about a "brain drain" at all. The minds that invented credit default swaps and collateralized debt obligations should be kept well away from the money supply. The best thing for the rest of us would be if these glorified flim-flam artists got out of the finance industry and Wall Street got back to basics.
DJ A

Jefferson City, MO

#8 Oct 27, 2009
Better still, the bailout never should've happened. It's been bad for all. It will only get worse.
Bagdad Harry

United States

#9 Oct 27, 2009
oplease wrote:
last I checked, bagdad harry, the gov was not subsidizing and bailing out sports teams, so your argument is specious at best.
call it "swamp drain" if it makes you feel better. If these guys are such geniuses, why did their high flying companies end up needing a gov bailout? They are valuable b/c of their connections, who they play golf with, etc.
This seems like a great way to introduce the executive class to the idea of outsourcing mgmt. I'm sure there are tons of highly educated people in other countries where you could hire an entire executive staff for what we pay for 1 bloviating US executive.
Oh but you have npot been paying attention to the grumblings from congress!
If the companies in question are still majority ownwed by the private sector ...then they should have their pay regualted by the board of trustees...like every other company....
If they are governement owned ...then by all means they work for the governement and the governement should set their pay....
Bagdad Harry

United States

#10 Oct 27, 2009
DJ A wrote:
Better still, the bailout never should've happened. It's been bad for all. It will only get worse.
It doesn't just smell of socialism...it is the Dictionary defintion of it.
Wondering

Tyngsboro, MA

#11 Oct 28, 2009
Bagdad Harry wrote:
So should we limit the pay of top athletes as well?
Were should we stop?
Yes, if they are on welfare like the bailed out companies. We should stop when they are off welfare and back on their own feet.
Wondering

Tyngsboro, MA

#12 Oct 28, 2009
DJ A wrote:
If somebody is overpaid, that's the business of the boss, board of directors, and owners.
Not if the overpayment is taxpayer funded welfare checks. Anyone that is being overpaid should be getting those dollars from company profits, not the taxpayers.
DJ A

Jefferson City, MO

#13 Oct 28, 2009
It appears the pay cuts might help kill the companies we bailed out. So we'll never get the money back. Maybe that will teach us not to dabble in Communism.
Amused

Newton Center, MA

#14 Oct 28, 2009
DJ A wrote:
It appears the pay cuts might help kill the companies we bailed out. So we'll never get the money back. Maybe that will teach us not to dabble in Communism.
These companies need to be broken up into smaller units, in any event. The bailout was essentially extortion - "we are so big, if we fail it would start a second great depression, so hand over the trillion." It is bad enough that we didn't have enough regulation in place to prevent this situation in the first place. It is absolutely indefensible that having seen what letting companies get so big their failure could take down the economy, we take no steps to prevent a repeat. The people running these companies are ruthless and predatory. Now that they know the US Treasury is an easy mark, they will be back for seconds, and thirds and...

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