It was reported recently that employees at Wall Street financial firms collected more than $20 billion in bonuses in 2009. I am sure some of these were justified, but we have learned the hard way that in many instances Fat Cat compensation has nothing to do with good corporate performance. If you doubt that assessment, take a look at some of the CEOs who were exorbitantly compensated for “driving their companies off the cliff” while being paid huge salaries in the process. For example:
You would think that the Fat Cats had learned their lesson, but that doesn’t appear to be the case. For example, AIG, the fallen insurer, paid out an additional $100 million last month and I am told there is another $75 million on the way. I believe Congress should put a stop to this sort of thing. At a minimum, Congress should make sure in the future that corporate bosses are paid for long-term performance – not short-term illusions which quite often in the past have resulted in financial disasters for companies and their shareholders.
Source: Public Citizen
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