Executive pay cap in the Stimulus

I’m glad to see that the Stimulus contained some form of executive pay cap, although I don’t think it’s enough. It didn’t cover enough executives and there are loop holes around it. However, people on wall street are now complaining about this cap, arguing that it would send talented manager into Hedge Funds and other institutions that have not received government aid.

“This is a big deal. This is a problem,” said Scott Talbott, chief lobbyist for the nation’s largest financial services firms. “It undermines the current incentive structure.” – Of course this would come from the mouth of a lobbyist.

I am confused..This is NOT A PROBLEM..It is really not that complicated and fairly logical. if the company didn’t fail, they wouldn’t require government funding. If they don’t need bailout money, then they can still dish out the billions in bonuses to their top executives. You screw up, want the government to use tax payer money to bail you out and you expect NO REPERCUSSIONS at all? Do they want a hug? Yes..it’s the free market and the market should dictate compensation appropriately..Your company makes record profit, you take home record bonus. when YOUR COMPANY DO NOT PERFORM AND LOSE BILLIONS, free market dictates that you don’t deserve the top money makers for your institution..You failed and yet you expect to keep your top performers by paying them MONEY THAT YOU DON’T HAVE?!?!? How does that work? These banks that take tax payer money, want their cake and eat it as well. There is an old saying, “there are no free lunches.” Maybe someone should tell these banks that there are no free lunches even for the elites. You take my money to save your company and there should be some consequences. It’s got to hurt or how else will you learn the lesson? If you end up losing talent to other institutions that DID NOT take government bail out money, then IT IS YOUR OWN FAULT and not the fault of the compensation cap.
This is what pisses Americans off..It’s not the obscene amount of money that they make, because Americans celebrate success and achievements. It’s the attitude, ego and audacity of these people that sit in their comfy offices and play with other people’s money. They think that they are somehow above the rest of the world. In the “normal” world, if you screw up, you don’t walk away with millions in severance or bonuses. In the real world, if I failed to perform, I don’t get to keep my job. In my reality, If my company fails, we don’t get billions, even millions, of dollars from the government to keep us going. In my world, my compensation is dictated by my performance and the company’s success, not by the compensation fairy that apparently lives in the rich part of Heaven.
WAKE UP WALL STREET..If you want to keep your comfy lifestyle, the nice cars, the house in the Hamptons and your upper class income, then manage your company properly. Take other people’s money seriously and realize that you and your compatriots have more power in your hand to ruin lives than you may think. With great power comes greater responsibilities. Do a good job and you WILL be rewarded with riches beyond my imagination. Do a shitty job and you will have to face the some consequences.

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