What law got passed that makes it not suspicious that CEO’s still get bonuses even as their companies tank? Modern executives must look at old Great Depression photos of former millionaires reduced to selling apples on the sidewalk, and suffer aneurysms. “Does… not… computer *ack!*”
“Suspicion” and a few buck will get you a tall latte!
There was a “nice” incident during the Housing-Turned-Euro-Crisis 2008 and after.
A midsize European bank had heavily invested into American CDS-es, which got them into trouble and the upcoming Euro crisis gave them the rest. They where considered “too large to fail” (for their home country) so they got a government bail-out.
Just over a year later the old CEO turn up again and sued for outstanding salary, severance pay and bonuses. The courts ruled that the bail-out was a special type of receivership, so no salery and the golden parachute was just cut. But the courts found that while in bankruptcy the bank still reached some of the milestones in the managers contracts, so he did get (parts of) his bonus for his last year with the company.
What law got passed that makes it not suspicious that CEO’s still get bonuses even as their companies tank? Modern executives must look at old Great Depression photos of former millionaires reduced to selling apples on the sidewalk, and suffer aneurysms. “Does… not… computer *ack!*”
Sorry… that should have just been “compute” before the Bill the Cat noise.
“Suspicion” and a few buck will get you a tall latte!
There was a “nice” incident during the Housing-Turned-Euro-Crisis 2008 and after.
A midsize European bank had heavily invested into American CDS-es, which got them into trouble and the upcoming Euro crisis gave them the rest. They where considered “too large to fail” (for their home country) so they got a government bail-out.
Just over a year later the old CEO turn up again and sued for outstanding salary, severance pay and bonuses. The courts ruled that the bail-out was a special type of receivership, so no salery and the golden parachute was just cut. But the courts found that while in bankruptcy the bank still reached some of the milestones in the managers contracts, so he did get (parts of) his bonus for his last year with the company.
Ah, who wouldn’t like such a favorable contract?
Its called lobbying. If we want CEO’s held accountable we need to ban it.
This is why we must vote!