Sunday, February 8, 2009
Executive compensation.
I've become deeply saddened over the years as capitalism has been driven into a huge ditch by greed and corrupt management practices. Compensation packages have been so excessive that in many cases it bears no relationship to reality. This largess has corrupted top management and the boards who are supposed to be responsible to shareholders. Furthermore, it seems that the way many compensation packages are structured are having a perverse effect. There is too much emphasis on the short term with no commensurate adjustment for what happens in the future, and there is no significant penalty for failure. The capital system works since people will usually do what is in their best interest. Managements are being compensated to take on more and more risk for short term gains since the payoffs are high, and there appears to be no appropriate penalty for current or future failures due to these risks.
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What can I say...Balls on accurate. The problem is not Capitalism as an increasing number of people want to claim, the problem is Responsibility, or the lack there of. For to long those at the wheel have forgotten their responsibility to their fellow man in order to service their own wants. Gone are the days of bi-directional company loyalty. The unfortunate by-product of this correctly labeled corrupt management structure is the corruption of the workers, the people. Gone is their desire to take personal responsibility for their lives or how their actions effect those around them. Basically an ever increasing decay of society and basic moral structure. This is evidenced daily by the news or a simple trip to the mall.
ReplyDeleteHowever, I do not believe that all is lost. The small percentage of American's who still believe in personal and community responsibility only need to stand up and begin to hold other responsible in every aspect of their lives to affect that change. We cannot wait to hold others accountable until after they have raided the corporate bank account. And we surely shouldn't feel bad for those who fall victim to the Madoff's of the world, because they believed there really was a free lunch.
You've got some great posts here, why no posts since February?!