70 Billion of Your Money going to executive pay and bonuses

[PetrusMonsFormicarum]

I felt bad going off on poor office workers staffing the phones at my senators' offices, but this news sticks in my craw more than anything from the last few months. We should all be livid. From the Guardian (UK):

Financial workers at Wall Street's top banks are to receive pay deals worth more than $70bn (£40bn), a substantial proportion of which is expected to be paid in discretionary bonuses, for their work so far this year - despite plunging the global financial system into its worst crisis since the 1929 stock market crash, the Guardian has learned.

Staff at six banks including Goldman Sachs and Citigroup are in line to pick up the payouts despite being the beneficiaries of a $700bn bail-out from the US government that has already prompted criticism. The government's cash has been poured in on the condition that excessive executive pay would be curbed.

The full article

By all accounts, these bastards have done a shitty job. They should be fired, and count themselves lucky if they don't face fraud charges.

[phantom power]

1. In a sense, the blame rests with the Boards of Directors...

and/or shareholders, except that shareholders don't set executive salaries.

It almost makes me ponder legislating maximum wages. It's ridiculous, but these people have shown absolutely zero responsibility.

[hay rick]

2. Maximum wage law?

The abuse here is bonuses. A practical alternative to a maximum wage law is a much more progressive income tax. Throughout the 50s and into the 60s the top marginal tax rate was 91%.

[phantom power]

3. OK, a maximum income law. Bonuses are taxable income....

Or, as you say, raise the top marginal tax rate back to its historic levels.

CEO wages at these companies are pretty extreme, too. Maybe I'm just in an overly Marxist mood today, but really, once you're making 5 or 10 million a year, is there any need to be making more?

:shrug:

[earth mom]

4. Most people here on DU were against the bailout because we KNEW this was gonna happen

The bailout cheerleaders should be ashamed of themselves. :grr: