90% paycuts for top execs of bailed out companies.

Zombie Acorn

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Original poster
Feb 2, 2009
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I would rather have not had to bail them out at all, I think this is fine as long as they were propped up by the government. The only adverse effects is that these executives aren't on lock so less qualified people might take over and make ill use of our forced "investment" as tax payers.

If the execs start crying the government should just require them to liquidate to pay the money back immediately.

Top pay for failure? I think not.

http://www.foxnews.com/politics/2009/10/21/obama-administration-order-steep-pay-cuts-bailed-companies/

"The Obama administration plans to order companies that received the most money from the $700 billion Wall Street bailout to slash pay to top executives, a government source told Fox Business Network.

Under the plan, the seven companies that received the most government aid will have to cut annual salaries by about 90 percent from last year for the 25 highest-paid executives.

The plan to order the steep pay cuts falls in line with plans pushed by the administration "compensation czar" Kenneth Feinberg, according to the government source.

An announcement is expected from the Treasury Department within the next few days.

The seven companies are: Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial.

Total compensation for the top executives at the seven firms will decline, on average, by about 50 percent, according to a person familiar with the administration's decision.

At the financial products division of AIG, the giant insurance company which has received taxpayer assistance valued at more than $180 billion, no top executive will receive more than $200,000 in total compensation, the person familiar with Feinberg's plan said."
 

Peace

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Less qualified? Aren't these exec's the same ones that caused the companies to go belly up ?.

If anything a new exec. might be better than keeping the old ones.
 

yg17

macrumors G5
Aug 1, 2004
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Less qualified? Aren't these exec's the same ones that caused the companies to go belly up ?.

If anything a new exec. might be better than keeping the old ones.
I think a retarded baby gorilla would be more qualified than these CEOs.
 

Sun Baked

macrumors G5
May 19, 2002
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The plan to order the steep pay cuts falls in line with plans pushed by the administration "compensation czar" Kenneth Feinberg, according to the government source.

An announcement is expected from the Treasury Department within the next few days.
Hopefully, the strong urging to bring the rest of the people below "in line" won't be pushed beyond middle management.

If they take aim at highly compensated sales teams and brokers, it'll get painful for the company. Enough competition where the cream of the crop that carries the rest can bail taking a bunch of client names with them.
 

leekohler

macrumors G5
Dec 22, 2004
14,162
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Chicago, Illinois
Hopefully, the strong urging to bring the rest of the people below "in line" won't be pushed beyond middle management.

If they take aim at highly compensated sales teams and brokers, it'll get painful for the company. Enough competition where the cream of the crop that carries the rest can bail taking a bunch of client names with them.
The cream of the crop obviously weren't very creamy.

If those execs are the cream of the crop, any company who hires them is in a hell of a lot of trouble.
 

GoCubsGo

macrumors Nehalem
Feb 19, 2005
35,743
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Well that is a good thing if you ask me. I'd prefer a firing and no golden parachute, but a 90% pay cut isn't so bad either.
 

Zombie Acorn

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Original poster
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The cream of the crop obviously weren't very creamy.

If those execs are the cream of the crop, any company who hires them is in a hell of a lot of trouble.
To be fair I knew a couple lower execs from another site who were working in profitable branches of AIG before and after the bank tank, so it wasn't all execs who were bad.

Some of these execs have changed also, but they should realize the company is government property now and tax payers should be paid back before they receive lavish compensation.
 

Peace

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To be fair I knew a couple lower execs from another site who were working in profitable branches of AIG before and after the bank tank, so it wasn't all execs who were bad.

Some of these execs have changed also, but they should realize the company is government property now and tax payers should be paid back before they receive lavish compensation.
That I agree with completely.
 

Zombie Acorn

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The only reason it mattered was you seemed to be putting an emphasize on the term "czar" as a bad,evil Obama thing.

Sorry if I took it the wrong way.
I didn't write that article :p

I will edit my original post to make it more clear where the article starts and my opinion ends. I commented on top and then posted the article below the link.
 

Sky Blue

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Jan 8, 2005
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The only reason it mattered was you seemed to be putting an emphasize on the term "czar" as a bad,evil Obama thing.

Sorry if I took it the wrong way.
I don't think it was OP, probably from the Fox News website, but I'm not following the link. They couldn't give him his official title, they had use their little "crony" version. Same old Fox ********.
 

Peace

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Let it be known that I personally dislike the term czar no matter who uses it. Be it Republican or Democrat.

I also dislike the term "homeland security". That one makes me sick.
 

Zombie Acorn

macrumors 65816
Original poster
Feb 2, 2009
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I don't think it was OP, probably from the Fox News website, but I'm not following the link. They couldn't give him his official title, they had use their little "crony" version. Same old Fox ********.
I don't know which way WSJ leans but they use the term czar too, it seems rather popular. Personally i would have never used the term if I was a politician.
 

Dont Hurt Me

macrumors 603
Dec 21, 2002
6,056
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Yahooville S.C.
This is a good thing, all these guys are overpaid and sit in a win win situation even after running their companys into the ground. They really all should be fired. Lets face it if we performed as bad as these guys did at their jobs the same would happen to us. The Auto guys going to Congress in private jets was just amazing and shows how out of touch these bastards are. The wallstreet guys should all be pushing brooms somewhere...no thats to good for these guys they should be fired! These guys do nothing but move paper and make millions. And we get the bill just nuts. Its time for a new congress that isnt bought off by these scumbags.
 

Shivetya

macrumors 68000
Jan 16, 2008
1,543
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If they are under contract for specific pay rate I don't see how the courts will support the government. If anything it will lead to more organizations to shun the federal government possibly leading to real damage to the economy as its better to go through bankruptcy than have a gun held to your head.
 

rdowns

macrumors Penryn
Jul 11, 2003
27,345
12,408
I certainly don't want the government dictating anything other than a minimum wage but in this instance, I'm all for it. Sadly, it's a gesture that comes way too late.

These banks are still floating their companies and earning profits with our money. Forget the TARP crap, that was a drop in the bucket. They got tens of billion from the Fed, FDIC and others. How the eff are these banks raking in so much money and using our money as capital and borrowing at zero % interest while increasing the interest they charge.
 

acurafan

macrumors 6502a
Sep 16, 2008
615
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calling these guys 'scumbags' is putting it mildly. frankly they all should be shot, between them and those real estate scumbags - helped lose a generation's worth of wealth.

btw, where is good 'old boy 'government sachs' on the list, those bishes got our tax money...supposedly they paid it back, but we all that's a crock of B******T. they had a hand in the AIG dog-poop.

at least liberal obama is doing something about it, ...everything i hear of this it makes me so mad :mad::mad::mad:
 

rdowns

macrumors Penryn
Jul 11, 2003
27,345
12,408
calling these guys 'scumbags' is putting it mildly. frankly they all should be shot, between them and those real estate scumbags - helped lose a generation's worth of wealth.

btw, where is good 'old boy 'government sachs' on the list, those bishes got our tax money...supposedly they paid it back, but we all that's a crock of B******T. they had a hand in the AIG dog-poop.

at least liberal obama is doing something about it, ...everything i hear of this it makes me so mad :mad::mad::mad:

Of course GS paid back their TARP money. They were paid out at 100% on their insurance by AIG, with our money. Not only that, we let them change from an investment bank to a regular bank so they were able to borrow at 0% and dip into that sweet Fed and FDIC money.
 

macfan881

macrumors 68020
Feb 22, 2006
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actaully before people blame obama for this wich it will the Bail out was all bushes doing