Excerpt from Thesis:
Although director believed to have simply no knowledge of the accounting scam, analysts speculate what other than his peace and quiet could possibly justify such a high compensation deal (English 2002). This is another company in which slews of jobs were lost, retirement benefits and benefits disappeared, yet many leading executives received lucrative settlement and severance packages, five years prior to any TARP funds were available to give them.
There is some wish that the situation might modify, however. Inside the wake with the financial scandal, and even in the many years movement leading up to it, many CEOs signed offers agreeing to limit their own pay will need to their businesses hit stressed waters (Penttila 2009). Congress has also been considering legislation that would either immediately limit executive compensation in public companies, or perhaps allow for direct shareholder declare in the payment of firm officers, yet often this kind of “consideration” is very political double-speak for seeming active until the wave of public feeling dies down and business can carry on as usual (Penttila 2009). There is, however , raising evidence of performance-based pay structures for management, meaning that they won’t emerge with millions of dollars after driving all their companies in to the ground – if these practices are actually put into place.
There is a tendency in case of like the current economic turmoil to become rattled and roused about various issues for any short time, and then to return to complacency once the mortgage repayments fall in line again. There may be some facts that this is already occurring; almost all of the news with regards to CEO payment is nearing a year older, and there has yet to get any true change. Precisely the same companies remain in existence, though there are fewer of which today, in addition to all likelihood they will always conduct business in the same way. Congress has no actual teeth in terms of this issue; they are politically influenced by the support of many organizations, and most possess certain company interests that belongs to them. Money will be a major part of the political system, and it is trusting to think that can be transformed or electric power and prosperity wrested away from those who have it on a large scale.
References
English, Simon. “WorldCom Chief was Aware of Fraudulence. ” The Telegraph. February 27, 2009
Kopecki, Dawn Goldman, Julianna. “Obama Calls Bonus deals Shameful and since Dodd Vows to Claim back Money. inches Bloomberg. February 27, 2009.
Oliphant, Wayne. “Stimulus’ Cap on Business Bonuses is Too Sweeping, Experts Warn. ” Los Angeles Moments. Feb twenty-seven, 2009
Pentilla, Bob. “Rethinking CEO Salaries. inches Entrepreneur Mag. Feb twenty-seven, 2009
