Last week’s Economist reports that Goldman-Sachs top executives won’t take bonuses this year. In a desperate attempt to get Congress to pony up money, Ford’s CEO Alan Mulally has offered to work for $1 a year if his company receives any loan money from Uncle Sam.
Subscribers to socialist thinking surely cheer such a reversal of top-dog compensation. Free-market fols likely lament the attack upon top wage-earners.
I’m still not sure the companies get the problem. I don’t think the problem, really, has been that people far up the food chain in Big Finance are in a place to earn huge bonuses. I think the thing that screams there was (or is) something wrong is that such bonuses would still be awards when one’s business is tanking to the point of being bailed out.
If the company you head is flailing toward bankruptcy, you probably didn’t earn your bonus this year. Let alone your salary.