Thursday, October 2, 2008

Golden Parachute? Infinitely Wrong

I just read an article about 12 defunct companies who are, in a large part, the cause for our financial instability and the 'golden parachutes' these CEOs are being rewarded for their severance of leading their companies into bankruptcy or being bailed out by the government. For the 12 companies, their CEO's were given, in total, $519M dollars severence. Surprisingly the former CEO of AIG decline the severance package which was worth $22M, perhaps for a better deal? Or b/c he's the only one who has a soul.

The financial sector is in complete and utter turmoil and we are rewarding these screw-ups with a big fat check. They never have to work again, and probably couldn't find a job where anyone would hire them. Imagine the interview process:

Q: Please tell us about a time you were able to resolve a large problem in a way where everyone seemed to benefit
A: Well, when running fill in the blank company we ran into some financial problems but through my ties with the government, despite it being an election year, I was able to raise a whopping $85B. And I was the cause of a donation of $700B from the government for my failed friends too!

Golden parachutes are complete and utter BS and should not be given or awarded. What sort of message is that sending? Hey CEOs, it's ok to screw up but be sure if you do to screw up big, but be sure to set yourself up with a killer severance package regardless of what happens to the company? That is very very wrong.

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