tag:blogger.com,1999:blog-1194375569044391746.post3313202978477091801..comments2024-03-28T05:30:09.322-04:00Comments on Corporate Justice Blog: whither executive compensation?Steven Ramirezhttp://www.blogger.com/profile/16741346526253732489noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-1194375569044391746.post-57793155052117522472009-08-05T12:51:42.023-04:002009-08-05T12:51:42.023-04:00This comment has been removed by a blog administrator.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1194375569044391746.post-72945984572558720812009-08-03T22:02:44.329-04:002009-08-03T22:02:44.329-04:00I like your sports analogy. Pay bonuses if the te...I like your sports analogy. Pay bonuses if the team/firm meets certain goals. It seems that this is not the kind of problem that is too difficult to fix, but that there is no will to fix it. And, the AMerican public seems numb. I'm not sure if shaming the firms that took bailout funds and paid huge bonuses would work. Months ago, I thought that reporting this kind of conduct would shame the firms that engaged in it and inspire them to do otherwise. Or, maybe the media is not making a big enough deal about all of this. For example, Bank of America settled with investors who sued because B of A lied to them about Merrill Lynch bonuses when the 2 companies combined. This was reported in the financial press, but I'm not sure it was a big story in mainstream media. It should have been.Cheryl L. Wadehttps://www.blogger.com/profile/08182167772552050045noreply@blogger.comtag:blogger.com,1999:blog-1194375569044391746.post-75633332174408600932009-08-02T21:59:32.283-04:002009-08-02T21:59:32.283-04:00anonymous:
yes, executive compensation is often c...anonymous:<br /><br />yes, executive compensation is often contracually specified but what "performance" is necessary to "earn" bonuses is often either unknown, easily met, or delivered in the form of stock options, etc. by my way of thinking, the entire incentive structure and pay for performance system on Wall Street is broken, inconsistent and non-sensical. a bonus for one executive at either Morgan Stanley or JP Morgan Chase in 2008 exceeded 95 million dollars.<br /><br />to professor ramirez, i agree that the recent bonus scandals are perverse. it is difficult to imagine where any other performance failure in America could earn golden parachutes and guaranteed bonus payments. the perversity of course, is that the taxpayer is subsidizing this corporate excess.dré cummingshttps://www.blogger.com/profile/13427038538259417962noreply@blogger.comtag:blogger.com,1999:blog-1194375569044391746.post-91260433781185396692009-08-02T19:45:27.481-04:002009-08-02T19:45:27.481-04:00Too-big-to-fail means that the US government guara...Too-big-to-fail means that the US government guarantees bonus payments and golden parachute payments for even the most inept managers.<br /><br />It is simultaneously the most injust and economically corrosive use of the government fisc in history. Talk about perverse incentives: to get rich in America the surest thing is to kill a big bank. . .and crash global capitalism!<br /><br />Not much "change" between Bush and Obama here.Steven Ramirezhttps://www.blogger.com/profile/16741346526253732489noreply@blogger.comtag:blogger.com,1999:blog-1194375569044391746.post-65975363352624035802009-08-01T22:14:59.651-04:002009-08-01T22:14:59.651-04:00professor cummings:
are bonuses in corporate amer...professor cummings:<br /><br />are bonuses in corporate america really that different from bonuses in the national football league. aren't bonuses tied into performance at most investment banks? and aren't these contractually based? it occurs to me that the last time bonuses were causing Congressional heartburn, AIG was trying to pay bonuses to employees that were contractually owed.Anonymousnoreply@blogger.com