A Comment About
Should We Really Cap Executive Salaries at Bailed-Out Companies?
February 5, 2009 - 12:44 am
Marc Malone
2009-02-05 12:58:34
#29 river – It is not a poorly-regulated system. It is an over-regulated system. I believe there already is a legal cap on CEO salaries of $4M/yr. (I could be wrong.) That’s why all these stupid excessive bonuses, as a way to get around a system.
I would much rather that this go away, and execs get paid a larger salary. The bonus system encourages them to do short-term profit-taking and not long-term wealth/value-building. It also encourages accounting shenanigans, and artificial wealth like Credit Default Swaps. Paper profits with no real value.
