For the complete report from the Nation click on this link
When "pay czar" Kenneth Feinberg appeared before the House Oversight and Government Reform Committee on Wednesday, most members seemed quite pleased with his work. Feinberg, after all, had just slashed cash compensation by 90 percent, and total compensation by 50 percent, for the top twenty-five executives at each of the seven companies under his purview--the seven lemons the American people now own post-bailout--AIG, Bank of America, Chrysler Financial, Chrysler Group LLC, Citigroup, GM, and GMAC. For politicians whose constituents want, if not blood, then at least some measure of revenge against the bailed-out fat cats, Feinberg's work is a gift. But it quickly became clear that whatever impact Feinberg's decisions might have on these seven companies, executive excess on Wall Street--which Missouri Democratic Congressman William Lacy Clay pointed out has resulted in CEOs making more than 400 times the average worker's pay, an all-time high--will not be impacted.
It's undeniable that Feinberg has had an impact on the companies in his purview. But it's equally clear that the casino culture that created this mess--including guaranteed exorbitant salaries and bonuses that have nothing to do with performance--remains untouched. Despite Feinberg's wish, Wall Street ain't the Yellow Brick Road, and the execs aren't Tin Men. There's no post-bailout heart waiting to be discovered here.
No comments:
Post a Comment