Posted by: Frank | March 14, 2009

So It Is Written

Two CEOs ago the company that I worked for basically relieved that CEO of his job because of his poor performance. He walked away with what is called a golden parachute and we were told at the time that the company had to pay him those tens of millions of dollars because they were contractually obligated to do so. Right now there is focus on the huge gap in pay between the top of corporations and the employees that actually do the work that makes the company produce a profit. However, let’s not just focus on the dollar amounts, but also look at the terms under which these people are employed. All I know is that there isn’t a contract between me and my company and there certainly aren’t terms by which the company has to pay me should I be forced to leave. On the contrary, most of us corporate, white-collar employees can be released by companies for just about any reason. Corporate reform has to start with not allowing contracts that force companies to reward bad performance, just as is the case for the majority of the people that work for those companies.

Here is the question that I have regarding A.I.G.’s payment of executive bonuses. If the government had not provided the bailout money, and A.I.G. failed, would they still pay those bonuses?


Responses

  1. This is sick. Why in the world are we helping these companies that keep sending millions to people who do not know how to run a company? Furthermore, I fear this is just the tip of the iceberg–there are so many ways these funds are hurting ‘average Joes’ but benefiting those in high places. Look what Enterprise rent-a-car did to get bailout funds:


    http://www.butasforme.com/2009/02/25/alert-enterprise-rent-a-car-may-have-fired-employees-as-fake-evidence-when-lobbing-for-bailout-money/


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