1/23/2010

Outrageous Bonus, Unfair Compensation

Change is definitely in order when it comes to the design of C suite compensation packages. However, rigorous thinking and careful writing is required lest we make this issue as silly as the administration has succeeded in making it sound. The investment of education and time, combination of special talents and dedication that it takes to join the C suite (or in fact get anywhere near it), merit high compensation. So greed may or may not play a factor in a particular case, but in general, the executives that manage and run the major for-profit business organizations, have risen to the top by merit, and thus merit considerable "reward". However, it is reasonable to say that the most senior managers should be held to the same measure as their reports: performance. So, while it may be really upsetting to see this one or that group making enormous amounts of money, it is not necessarily true that it is wrong or unfair. In any case, the root of this problem lies in the reward for short term performance that is integrated into the institutional money managers' compensation/career progress. Having said all of this, the use of taxpayers' funds/National debt to enable financial institutions to reap outsize rewards is not acceptable, and so the lightning that these firms have drawn for large payouts from huge performance, is well deserved. But, let's agree that it is our public servants who made this possible, so we the people should direct our anger and disgust at them.

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