Discussion in 'Members' Lounge' started by corvetteguy78, Feb 4, 2009.
word $500,000k cap
Obama caps executive pay tied to bailout money - Yahoo! News
it needed to be done. hopefully they lock them down even tighter now.
Crap... What will they do now? We need to get a fundraising event together for them. Maybe a food drive.
I mean they've got a lot of mouths to feed! Their whole family, all the servants, maybe even their families... Yachts don't fuel or crew themselves either... man o man it's getting bad.
i think even 500k is absurd.
if you're in charge, and you're going under, you screwed up and don't deserve shit.
a) you should be fired without severence
b) if it wasn't your fault, your salary should be reduced to 100k. 100k in NYC is practically minimum wage anyway
I agree 110%...but....how are you going to get quality execs if that can happen?
seriously, they are probably sitting in their private library drinking well aged scotch and feeling sorry for themselves.
simple- do your job well, and you won't need a bailout, and you can make whatever number the board approves for you.
Let me paint everybody a picture.
Let's say a number of teams in Major League Baseball have had a few rough years. The Yankees, the Red Sox, and a few other big name teams are in dire straights after a few bad seasons and can no longer do business. In an effort to save Major League Baseball they ask the government to intervene. The government, in an effort to save Baseball, comes up with a "baseball stimulus package", aimed at bailing out teams in need. Not all teams need bailed out mind you. The Angels, the Dodgers, and the Mariners, while not as big as ball clubs like New York, are doing just fine with their smaller market shares even though the downturn in baseball has hurt them as well.
Now let's say Obama comes out and says that no member of the ball clubs recieving aid can make more then $200,000/yr. The logic behind this move is that they're in dire straights and therefore do not deserve to be "fat cats" of the baseball diamond anymore.
Now let's say "Mark" (a fictional baseball player) is the star pitcher for the New York Yankees, now a part of the "Baseball Bailout". It isn't that every member of the Yankee's organization is performing poorly, Mark was a Cy Young (one of baseball's highest awards) finalist for the last five years. The Yankee's real problem is with their defense, poor play on the bases has yielded too many losses, causing the problem the Yankee's are faced with. Mark is a genuine talent.
Facing a $200,000/yr salary, one twenty fifth of what we was formerly making (5 mil a year), Mark receives an offer to play ball for the Angels for $3,000,000 a year. The Angles could never afford his $5,000,000 salary, but now with him only making 200K a year they're damn competitive in acquiring him as a free agent. Mark signs, so does the Yankee's short stop who was a real talent. The Angles also acquire two pitch hitters, an outfielder, and a 2nd Baseman from other teams who have signed on to the "Baseball Stimulus" package and are forced to salary cap their talent. This pattern repeats itself around Major League Baseball, with free agents of high quality leaving the bail out teams in favor of higher pay elsewhere.
When the dust clears the Yankees, Redsox, and other bailout teams have had a mass exodus of upper level talent. Teams like the Angels and the Mariners take their place at the top of the baseball food change and teams like the Yankees never again rise to the level they once were.
By putting a $500,000 salary cap on executives, the government has just handcuffed the businesses we're trying to help. For every GMC or Chysler who is involved in the bailout, there is a Honda or a Toyota who is not. You think these foreign companies wouldn't love to get their hands on our executives for bargain prices? While some of them don't deserve the money they earn, others are the brightest minds in the free market! AND THEY ARE ALL FREE AGENTS.
Just like the Yankees and Redsox, companies like GMC and Chrysler will never archive the success they once had without their big talent. When a company fails to grow, the people who have invested in it are the ones who financially pay the price. In the case of GMC Chrysler, and countless other bailout bound companies, that investor is US, the American tax payer.
The only thing I don't like about this is the government control. They are buying their way into controlling several companies.. "We'll give you money.. Now do as we say".. That doesn't pass the sniff test.
Shame on these executives for taking millions of dollars a year and running the company into the shitter. They should have been cut by themselves or their companies a long time ago.
These companies were delivering what we were asking for.. and now we are punishing the CEO for listening to its consumers. If Oil was never a issue. SUV and Vipers for Everyone.. If I owned a company I would be pissed that someone says how much of a bonus I get!
There is no Oil threat.. America has a TON of oil. Wicked Business Games
We only make between 40-50% percent of our own oil
The problem is, rather then selling it to Americans, we sell it on the world market because it's more profitable, and that's fine because we're a free market society.
Oil will be gone by the end of this century, before that happens people will start fighting over it. I'd just assume we sit that fight out. I support Picken's plan of converting to American natural gas in the short term while we develop out battery, solar, wind technology.
its ok theres enough loopholes in this that no one will have to cap anything anyway
i the mean time... our "stimulus" package is rapidly approaching the $1 TRILLION mark
I think phyer touched on a great point and I think it deserves some attention. He is exactly right about what the government is doing. These companies are in such a pit that they "have" to accept, now what do you think the chances of a company taking out one of these loans being able to pay it back anytime soon? Aside from the 15 percenters in the Democratic party that will lovely embrace the nationalization of our private industry it appears that this is a good way to slip it in. Look at how pissed off everyone is at these corporations, I am pissed about it as well but demanding the goverment step in and get it take care of is the wrong solution. We are a free market society, we let the greedy sons of bitches fail and allow hungrerer companies with a superior product, customer service or price fill the void. Everyone wins. What we are doing now is shoving fingers in Hoover Dam. And we ran out of fingers a couple months ago. I sincerly hope I am wrong, but this shit no matter how complicated they try and make it seem is all just a smoke screen. Common sense is where its at people. If it appears that someone is gold plating a pile of shit, chances are they are silver plating a ton of shit.
In my opinion the Media has already picked its side, they see socialism or socilism lite comming down the stretch and they dont want to be on the wrong side of The Fairness Doctrine. They figure if they play ball and ignore hard hitting pieces they may get a little more say when the time comes.
the media is all for it... hell they elected this guy... and the bulk of the main stream media isnt going to report anything bad about it because in their eyes this is progress... and the few who do say something will be silenced or otherwise discredited and swept under the rug... and everyone is so disgusted and disassociated with politics right now that they wont notice or care what is going on... they got their "change"... now everything is going to be alright...
funny, everyone thought i was crazy before the election when i said these people are Marxists and would push this country further into Socialism first chance they got...
There is one flaw to this logic. Well not your logic, but the logic of a stimulus in general. I'll just use sports as my example too.
When the Jets and Yankees were in need of talent(and money to buy it), Hess and Steinbrenner went in their own pockets because they wanted their teams(businesses) to succeed. Show me one president or CEO that is willing to do this. Not a single damn one. They don't give a shit that the companies are going under. The only thing they care about is that their retirement packages are going down the tube with the companies. If they had their cake already, they would walk away from the birthday boy as he burned to death.
the flaw to all that logic is that the pitcher is a member of a team. he is NOT the owner or CEO that has a direct say on how his teamates are at doing their jobs and 'winning games'.
Then these companies still fail like they should have, only it's an expensive roundabout way to do it.
I would hope not, 'Was CFO of one of the largest companies on the planet and helped run it into the ground' doesn't look good on the ol' resume.
yep, thats what i was going to say before i read the post.
the analogy is close, but it would be better if you were using the GM rather than the players. the factory workers aren't the ones causing the problems, and neither is the outfielder.
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