Remembering days of my youth and that tale of Chicken Little running around saying the sky is falling the sky is falling is what brings to mind the most recent spate of incidents that have most rationale people scratching their heads.
1. Executive Pay/Compensation
President Barack Obama on Wednesday imposed $500,000 caps on senior executive pay for the most distressed financial institutions receiving federal bailout money, saying Americans are upset with "executives being rewarded for failure." The move comes amid a national outcry over huge bonuses going to executives heading companies seeking taxpayer dollars to remain afloat. The desire for limits was reinforced by revelations that Wall Street firms paid more than $18 billion in bonuses in 2008 even amid the economic downturn and the massive taxpayer-dollar infusion into their industry.
GOOD!
2. Wells Fargo forgoes Las Vegas junket
Wells Fargo abruptly canceled a pricey Las Vegas casino junket for employees Tuesday after a torrent of criticism that it was misusing $25 billion in taxpayer bailout money. The company initially defended the trip after The Associated Press reported it had booked 12 nights beginning Friday at the Wynn Las Vegas and the Encore Las Vegas, two of the Strip's most expensive hotels.
But within hours, investigators and lawmakers on Capitol Hill had scorned the bank, and the company canceled. The conference is a Wells Fargo tradition. Previous all-expense-paid trips have included helicopter rides, wine tasting, horseback riding in Puerto Rico and a private Jimmy Buffett concert in the Bahamas.
Initially, the company indicated it had no plans to cancel.
"Recognition events are still part of our culture," spokeswoman Melissa Murray said Tuesday afternoon.
On Capitol Hill, however, some lawmakers were incensed.
"Let's get this straight: These guys are going to Vegas to roll the dice on the taxpayer dime?" said U.S. Rep. Shelley Moore Capito, R-W.V., who sits on the House Financial Services Committee. "They're tone deaf. It's outrageous."
The trip was to come on the heels of this week's announcement that Wells Fargo lost more than $2.3 billion in the last three months of 2008.
"In light of the current environment, we have now decided to cancel this event as well," the company said Tuesday night in a news release that also said it had never planned to use taxpayer bailout money for the trip.
Corporate culture? That phrase needs to be chucked out the window. And don't give me that - funds weren't going to be used for the fun stuff. Well if you have funds to do that stuff - why do you need money from the government. If I am wondering about how I am going to afford to eat - I don't go out to eat and drop $80 McFly.
3. AIG and Spa Treatments
Corporate retreats have attracted criticism since the bank bailout last fall. Congress scolded insurance giant American International Group (AIG) for spending $440,000 on spa treatments for executives just days after the company took $85 billion from taxpayers. AIG has since canceled all such outings.
Is it just me or don't you think the execs could have afforded the spa treatments on their own dime?????
4.Automakers pleading for money yet flying in corporate jets
A couple months ago the CEO's of the big three automakers all flew to DC to meet with lawmakers to request funding in which $26 billion was requested and granted. And in doing so - all three flew separately.......in their own private corporate jet. A month later - they flew commercial.
God forbid you have to mix with the lowly people at the public airport and fly in a commercial jet. Oh how does one survive?
5. Citigroup and a new corporate jet
A few days ago it was revealed that Citigroup acting under pressure from Capitol Hill decided to cancel the purchase of a new corporate jet costing about $50 million. They received about $45 billion in bailout funds.
Same statement as above.
6. Merrill Lynch Chief Executive John Thain has suggested to directors that he get a 2008 bonus of as much as $10 million.
Merrill was arguably saved from extinction when it agreed to merge on September 15, an hour before Lehman Brothers filed for bankruptcy. The fear was that Merrill could be next if shareholders and trading partners fled, as many did at Lehman and the former Bear Stearns. Mr. Thain has said he deserves a bonus because he helped avert what could have been a much larger crisis at the firm.
Luckily the request was withdrawn after public opinion scorched him on this. But what an arrogant SOB.
7. WaMu CEO Gets 20 Million payout as bank fails after working 17 Days
WaMu threw a $7.5 million bonus at Fishman when it hired him on Sept. 8, and guaranteed him an immediate cash severance of $11.6 million — both of which he gets to keep. He also was eligible for annual bonuses of up to 365 percent of his annual base pay — set at $1 million — to go with millions of shares of company stock. Fishman does lose out on a big bonus that would have kicked in had he remained on the job through 2009. Documents show WaMu was going to pay their new boss $8 million to simply not screw up and get fired — all negotiated as the Seattle-based banking giant's loses climbed to an estimated $20 billion.
I don't even know how to respond to this one.
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Is it just me? What do these people not get? Have they really gotten so high up on their perch that they just cannot see beyond their nose and the reality of what needs to happen vs "keeping" a corporate culture alive? I bet in reality - the people that lost their jobs at Wells would have preferred that the money be allocated back to keeping them employed vs being spent on others getting to party it up. At a time when so many people are losing their jobs and unable to find work - of any kind. The thoughts and despair of how one is going to feed their children, afford to shelter their family, go through the shame of not being able to live their life how they had planned and worked hard for. The thought that retirement in a few short years is now a distant memory. Vacations? What is that? There aren't any more vacations. Not unless you consider roughing it for the weekend in the mountains. I spoke to a colleague the other day who told me that he knows tons of Harvard graduated executives that can't even get a sniff of a job anywhere. Resumes that are impeccable and in a normal economy would have employers salivating to hire these people.
And yet the people at the top who were so desperately pleading to have their companies saved and to give them money because it is a viable thing to do for the economy - and yet they can't make the correct decisions regarding company funds as clearing illustrated above.
I love the fact that if you receive taxpayer money - the executives now don't get their loads of money like they previously did. Serves them right. TO be morally irresponsible and completely irrational in the face of an economic crisis is beyond my comprehension to understand. Some of the statements above have me wondering how did these people get to BE at the top of the pyramid? I hope you are as incensed as I am about this. It really is reprehensible.
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