There is absolutely nothing wrong with a successful corporation rewarding its good executives with bonus payments at year’s end. But I have a hard time understanding how a company that is close to insolvency can pay out large bonuses to its bosses. In that regard, we have seen huge bonuses being paid by companies that lost tremendous amounts of money during the “bonus year.” AIG is just one such example, and there are scores of others. It’s pretty well established that executive bonuses in such cases are alive and well in Corporate America. The public furor over questionable bonuses has placed a large bull’s-eye on corporations that have engaged in such activity. Hopefully, shareholders will wake up and say enough is enough when it comes to rewarding incompetence.
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