Sunday, February 12, 2012
U.S. Is Asked to Review Bankruptcy Bonuses
I think this is a good example of how government should intervene with the market, and what the role of the government should be. The government should not intervene too directly in the market, such as using money to bail out companies-which in the future would be too big to bail-instead, they should focus on long-term changes, in this case better code of law. In other words, they should focus on creating more healthy environment for companies to compete.
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4 comments:
Is this legal? I don't see how a company could legally give bonuses and extra money to an executive when they know they are going under.
The funny thing is that likely the way that pay packages are structured.... whether a company is doing well or not the C-level people are still entitled to millions in year end bonuses
It seems very silly in my opinion to feed an executive more money as they are failing. It is probably their fault that they are struggling in the first place yet they are still cashing in on a lot of money!
I agree with admiller4. It is definitely their fault. That's why their wages should be cut instead of increased...
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