Voters rebel at ‘fat cat’ bailouts
October 3rd, 2008 | Diane Stafford
Do not bail out the fat cats.
Voters made that perfectly clear, and their re-election-obsessed congressional representatives took heed.
Delaying a Wall Street bailout wasn’t wise for the international economy, but chalk up points for the worker bees.
They finally got someone’s attention in Washington!
Nobody bails me out if I make bad financial decisions.
And, while we’re at it: No more multi-million-dollar parachutes for executives who mismanage other people’s money.
How quickly the “bailout” became a slightly more politically palatable “rescue.”
Note to Congress:
You’ve noticed that “trickle down” hasn’t worked very well lately, haven’t you?
Average CEO compensation last year was 275 times that of average U.S. worker pay, based on average hourly pay for about 80 percent of the U.S. workforce (the folks who actually produce the products and services that make companies work).
In a single work day last year, a typical big-company CEO earned as much as one of those workers did in their entire 260-day work year.
The well-paid corporate compensation consultants counterpunched, of course, telling Congress not to “handcuff” companies by putting limits on executive pay. They said pay ceilings will hurt companies’ ability to attract top talent.
Yeah. It’s been working so well.
It’s over-reaching the cure to demand a shareholder vote on top-exec compensation. But as the nation works through this financial crisis, the folks in the trenches must be heard.
Enough is enough.
Executives who earned more than they were worth to start with should not, by all that is right and just, be rewarded when they leave behind organizations littered with pink slips.
And have you looked at the value of your 401(k) this week?
Ouch. The only trickle-down there is the sound of assets swirling down the drain.
And where is the call for privatizing Social Security now?
Not exactly an election-time winner this go-around, huh?
Yes, the economy is cyclical. Has been. Will be. But the hurt on the downsides must be shared.
Unless legislators do what corporate compensation committees haven’t had the backbone to do, most of working America will continue to suffer from the greedy mistakes of a few.
Regulation? In this case, bring it on.
Unlimited executive greed has severed people from jobs and jobs from the economy. It’s gnawed away retirement security and college education funds in hard-working families.
And the architects of this economic collapse?
Greet them if you’re ever in Sun Valley…or Aspen…or Tuscany…or…
About the Author: Diane Stafford is the workplace and careers columnist at The Kansas City Star. A veteran journalist, she has held several reporting and editing positions at The Star on both the business and metropolitan desks. Currently, she writes columns that appear in The Star on Thursdays and Sundays as well as other business and economic news articles throughout the week, accessible at www.kansascity.com. Her daily “Workspace” blog also is available at www.workspacekc.typepad.com. She is the author of “Your Job: Getting It, Keeping It, Improving It, Changing It,” a career advice book. She holds bachelor’s and master’s degrees in communications from Stanford University.
Cross-posted at Workspace.
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Tags: bailout, CEO pay, Diane Stafford
October 9th, 2008 at 3:16 pm
Diane, I agree with the spirit and sentiment of your post completely, but I’m not so sure about the call NOT to bail out the finance industry. If we let some of these financial institutions fail, what would happen? Each would be a huge black vortex that would suck it’s clients and huge chunks of the economy down with it. And there’s no plan even on how we could make that whole process easier for companies and people caught in the implosion. I wonder if “bailout” is really just a very unfortunate choice of words - whether the outrage it illicits is more a marketing problem than one of real substance. The paper today talked about Treasury infusing banks with liquidity in return for equity stakes, so the government - and thus taxpayers - would eventually recoup all that investment. A lifeline is not necessarily a bailout, which implies getting something for free. Those financial institutions would have to give up a lot of their independence to get that bailout, and finance execs are certainly facing a much less personally lucrative future… which even then is certainly more than they deserve.
October 17th, 2008 at 9:20 am
Can you say utter BS with regard to this bailout package? The common person/taxpayer is becoming tantamount to a “booty call”– only called upon to satisfy the desires of others when they have mismanaged their assets because of their own avarice.
The same idiots who preach for deregulation now wants government intervention. How hypocritical is that?