Wednesday, October 21, 2009

Barry Bops Bobbi's Best Buds

Just saw the headline:

U.S. Said to Order Deep Pay Cuts at Bailed-Out Companies

In part:
Under the plan, which will be announced in the next few days by the Treasury Department, the seven companies that received the most assistance will have to cut the annual salaries of their 25 best-paid executives by an average of about 90 percent from last year. Their total compensation — including bonuses and retirement contributions — will drop, on average, by about 50 percent. The companies are Citigroup, Bank of America. . .
I stopped reading at that point and will celebrate Vishnu's karmic engineering being done for Roberta X on her favorite bank folks.

I'm smiling as I knew that the Progressive Socialist/Fascists would not be able to resist meddling in the companies who were foolish enough to accept the Government's money. The fuckwits damn well knew there were strings attached. . .

7 comments:

Roberta X said...

Yeeees! Yes, yes yes! ...Umm, that was loud, wasn't it? Oops.

Crucis said...

I see that Roberta is in gleeful concurrence. I believe that companies/corporations should grow or die based on their own competence.

No bailout, noway, nohow.

heyercapital said...

I see we're falling for headlines.

Notice how the Mandarins serving the Most High didn't even touch the pay of the ones that are most responsible for this mess? Names: GS & JPM

Feinberg has it exactly backwards. He is pushing these executives into mostly stock-only compensation. He even drooled out the words, "What I learned through this whole experience is there is entirely too much reliance on pay in cash." If an executive is entirely leveraged to the upside in the stock, he has all the incentives in the world to use the usual tricks of corporate finance to lever up the balance sheet to juice EPS at the expense of stability.

A mostly cash compensation package induces stability; stock-only compensation requires betting the farm in order for the risk to pay off.

And that idiot is greeted with cheers and applause.

Aaron said...

Sadly, in this little animal farm, idiocy is always greeted with cheers and applause.

Shermlock Shomes said...

We can't help it. It's in our genes. When the ape that stole your fruit falls out of the tree and is mauled and eaten by the hyenas, you just have to hoot gleefully. I know I do. And then we have to decide what we're going to do about the lions.

staghounds said...

I wonder how much it has, and will in legal fees, cost the taxpayers to administer this savage punishment?

Back in the Dark Ages, we had an excuse- we didn't know things.

But to retreat to wilful ignorance and accept magic when we KNOW BETTER...

Sarcastic Bastard said...

I'm not going to cry for the idiot who let the barbarian in the gate when he gets the barbarian sword in his gut. Even if I am next line.