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That is a signifcant step down the road towards socialism...
What's next? A universal "maximum wage" for everyone?
Just saw Maxine Waters, D-CA, on Glenn Beck. She was explaining how 'it would work' and said to the effect, 'would be social...', stopped and said 'uhhhhh, basically would be government in control'.
Not the exact words but she got the socialism part out.
While many posters rejoice in Obama proposing caps on executive compensation and golden parachutes for companies getting government assistance (and I generally agree with the posters), another item received little notice:
The administration also will propose long-term compensation restrictions even for companies that don't receive government assistance, Obama said.
Those proposals include:
• Requiring top executives at financial institutions to hold stock for several years before they can cash out.
• A Treasury-sponsored conference on a long-term overhaul of executive compensation.
I object to this proposal, companies not requesting government assistance shouldn't be restricted in setting compensation.
I strongly disagree with this conclusion you've made but not for the reasons you might suspect. My grievance is not about wealth, but abused power. The problem in corporate america is on par with insider trading. Operating at that level of authority in capitalist system has shown itself to reward short sighted job performance in good old boy networks that ultimately results in grave harm to companies. The phenomena I'll call playing to lose and loopholes (authored by corporations via purchased legislation) making that behavior very profitable. Make me look good today because my raise is up for a vote mentality, but shoot ourselves in the foot for long term health.
I believe it wise to keep job performance and pay as a solid basis. What's come up short is tying executive compensation to long term effects and if you can figure another way, I'm listening. The criticism of american executives comes from peers all over the globe, BTW, not just some perceived whining proletariat class in america.
The criticism of peers is spot on in tone/ tenor, and consistent with what I personally witnessed OTJ in oil industry (but also ancillary industries & input from peers in other industries entirely). Articles presented not just in the Economist but also WSJ- sorry I can't recall the links. CEO's being rewarded for failure... that's not capitalism anymore. Repubs in a way take the full brunt of poison in that well because of their rhetoric, and because of the blind eye they've turned for decades on the subject. Libertarian or laissez faire 'it'll fix itself' doesn't work when politicians are bought and sold through campaign funding. The stage that facilitated enron is still in play, and that needs fixing for the sake of ALL poli parties. We the people failing to stick together to tame the K street beast leaves us vulnerable to the worst of capitalisms cannibal habit.
Unless the entire world follows the plan this is just a disastrous plan aimed at sending more of our talent elsewhere. No better than bringing people in that get doctoral degrees then sending them on their way off to the competition.
Talent? Doctoral degrees?
We could learn quite a few things from Japanese companies.
We could learn quite a few things from Japanese companies.
I believe the CEO of Toyota makes around 1 million dollars a year. My hypothetical question to people who discuss whos to blame for GM's demise. The question I pose is would you have more confidence in GM if Toyota took over management and ran the company. Most people usually say yes.
The CEO of a Japanese airline cut his own pay to less than what the pilots make.
It appears Japanese CEO's take pride in the companies they run.
I believe the CEO of Toyota makes around 1 million dollars a year. My hypothetical question to people who discuss whos to blame for GM's demise. The question I pose is would you have more confidence in GM if Toyota took over management and ran the company. Most people usually say yes.
The CEO of a Japanese airline cut his own pay to less than what the pilots make.
It appears Japanese CEO's take pride in the companies they run.
Yep. In 2006, the top 21 executives at Honda earned a total of $11.1 million in salary and bonus (combined!). That is almost as much as GM's Rick Wagoner made in the same year. With these financial institutions, we're looking at over $20 million.
Besides the salary, the Japanese also seem to focus more on competence than on educational qualifications. Honda's CEO, Takeo Fukui has only a bachelor's degree in chemistry, similar stories at the other major Japanese automakers. We've got MBA's and double MBA's over here.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,822,748 times
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Quote:
Originally Posted by NewToCA
While many posters rejoice in Obama proposing caps on executive compensation and golden parachutes for companies getting government assistance (and I generally agree with the posters), another item received little notice:
The administration also will propose long-term compensation restrictions even for companies that don't receive government assistance, Obama said.
Those proposals include:
• Requiring top executives at financial institutions to hold stock for several years before they can cash out.
• A Treasury-sponsored conference on a long-term overhaul of executive compensation.
Yep. In 2006, the top 21 executives at Honda earned a total of $11.1 million in salary and bonus (combined!). That is almost as much as GM's Rick Wagoner made in the same year. With these financial institutions, we're looking at over $20 million.
Besides the salary, the Japanese also seem to focus more on competence than on educational qualifications. Honda's CEO, Takeo Fukui has only a bachelor's degree in chemistry, similar stories at the other major Japanese automakers. We've got MBA's and double MBA's over here.
You don't even have to look that far:
Costco CEO gets $3.8 million in 2008 compensation - Yahoo! Finance (http://finance.yahoo.com/news/Costco-CEO-gets-38-million-in-apf-13874085.html - broken link)
While he does get stock options and other bonuses, Costco's CEO's salary is $350,000 a year.
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