Every company that is a private enterprise should be able to have any bonus policy it wants to have. The compensation packages for the folks that get millions are none of our business. Being able to pay these incredible amounts of money should be the decision of the Board of Directors. If the customers of any company continue to buy the goods and services offered, so be it. If the company goes belly up, so be it. This is life in a society that is based upon a system of capitalism. Frankly, I cannot think of any better.
The rub comes when the company is failing. When it heads for the doors of Congress for a handout, all bets are off. The taxpayers then should have the only say in who gets what. Bonuses should be history. Period. There is absolutely no justification for bonuses to anyone, let alone to people who have been in positions of responsibility and contributed to the giant losses.
The latest is Fannie Mae and Freddie Mac. Some are saying that the planned bonuses are “retention” bonuses. The claim is that these people are needed to guide these two quasi-governmental companies through the present mess. I say, “Are you crazy?”. These are the people who created the mess. They not only should not get bonuses but likely should be fired pronto. You will never convince me that they are “needed”. I suspect fresh graduates of the nation’s business schools could do better than retaining those who have proven they cannot do the job. And, besides, the newly graduated need jobs. Two birds with one stone!!!!
I hope our Congressional representative act to stop this nonsense.