Are Executive Bonuses in Bailed Out Companies Absurd?

30 01 2009

Many of the companies that received funds during the first wave of bailouts paid billions and billions of dollars in executive compensation. I think that is ABSURD. In any company being bailed out, I think the board and executive management should loose their absurd compensation. Thy should get reasonable compensation. But the underlying problem of course is that the laws are too loose and the managers of these companies acted freely to line their pockets with case and bilk investors with no fear of prison or loss of their windfalls. When a company is publically held I believe the board should be held to higher standards of accountability for their success or failure. In addition, there is obviously way too much collusion and not enough independant review of corporate books.

biden21

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2 responses

13 02 2009
Pittsburgh Injury Attorney

It will be interesting indeed to see the changes in the law regarding the total compensation package executive managers get when their company agreed to enter the bailout program. One thing I would look for is the “future value” of options must be included in the calculations.

23 02 2009
Charlotte Bankruptcy Lawyers

It is hard to believe that investment frauds were on rise and there were no audits. Basically we have bailed out a corrupt system.

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