You can’t get something for nothing; that is unless you are one of the top execs at some financial firm or big company that has a Board of Directors consisting of either idiots or near criminals. I cannot understand the logic of paying anyone a “bonus” in a company that is losing money. Even more, I cannot understand the logic of paying someone millions of dollars to leave a company unless he/she has demonstrated in some significant way that he/she has benefited the company over a period of time. I learned not long ago…. and this completely shocked me since I come from the world of small business …… that executive level folks negotiate the millions they receive for severance at the same time they are negotiating employment terms before being hired. This is a complete disconnect for me. I can’t fathom agreeing to pay big bucks for departure before knowing what contribution or lack thereof an individual will make while employed at a given company. This is the height of stupidity.
This system cheats the people who own the company as shareholders. I have a feeling that the Board of Director mentality that has nurtured this environment is not one of integrity but rather one of greed. It appears this mentality is pervasive in our corporate world. This would never happen in the world of small business. In small business, if the company loses money, you sure don’t get bonuses. You may be lucky to retain your job regardless of how well you may be performing.
If nothing else, the move by the Obama administration to cap executive compensation in companies that ask for and receive significant tax payer support has brought more attention to the dishonesty and greed at the corporate executive level in this country. It remains to be seen as to whether the Obama plan will work or not. My highest hope is that the companies that have betrayed the public trust, like the Bush administration betrayed the public trust, will go down in flames. Maybe from the ashes something better will rise.