“I’M the chief executive of a publicly traded company and, like my peers, I’m very highly paid. The difference between salaries like mine and those of average Americans creates a lot of tension, and I’d like to offer a suggestion. President Obama should celebrate our success, rather than trying to shame us or cap our pay. But he should also take half of our huge earnings in taxes, instead of the current one-third.”
Although eventually commenting that the compensation limit of $500,000 is based on a company receiving bail-out money [taxpayers paying for assumed risk, forgoing moral hazard, and a whole host of other ethical issues], it took nearly 400 words to get to it. Hastings suggests the President increase the tax rate to 50% which is counter to every Republican desire currently on the Hill. Furthermore, it is nothing but a stopgap measure, being repaid each year. I don’t know of anyone who pays 35% of their taxes and leaves it at that after doing their taxes, I’d say most people get some taxes paid back.
I’m sure Hastings lives an altruistic life based on the challenge of the job, but bankers who make millions a year, and futures traders who made billions in compensation while driving up oil prices to record levels, do not necessarily. And, I’ve said this to friends and family… the people who lead companies into the positions they are in, wherein they require public bailout money, are not the people we want running publicly traded companies. I want a CEO who is indeed shameful when they discover their company is imploding, not just kicking a can down the road saying “Awww Shucks, if only.”
There are people out here in the world willing to direct a company at a quarter of the wage, but no one wants to take that risk. I think Hastings should look at it in a different way. At what point did the CEO’s of failed banks, and individuals within them, earn their wage while the business was failing? Was it when they stashed losses in offshore accounts? Was it when they accellerated gains to show profits during 2007 when they weren’t realized until June of 2008? Was it when they accepted bailout money [taxpayer money] and then gave it out as bonuses? Was it when they purchased a $50 million jet on bailout money?
I think shame is exactly what needs to be put into each CEO as a nagging feeling when they make the wrong decision, and at some threshold within their psyche, it should make them feel so bad that they quit the business and not take their golden parachute 8 months before the business is transferred to another CEO who catches all of the blame. Sort of what Obama is dealing with right now.
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