Japan Airline’s CEO Slashes his Pay Below the Pay of Pilots
By Barry Ritholtz - December 8th, 2008, 2:15PM
via Flixxy
In any great organization it is far, far safer to be wrong with the majority than to be right alone. —John Kenneth Galbraith
Macro Notes
US$ rally continuesPeter Boockvar
Asian currencies continue to sell off vs the $ on the heels of the news yesterday that South Korea said they will look into hot money inflows stemming from the $ carry trade and the Bank of Indonesia said they are looking into the foreign buying of bills. This follows the news a few weeks ago that Taiwan was limiting foreign deposit holdings and Brazil was taxing foreign inflow transactions. As I mentioned yesterday, we may have reached a short term pain threshold in terms of $ weakness and foreign countries are fighting back as they certainly won't wait for...
read more »
The Big Picture is proudly powered by
WordPress
Entries (RSS) and Comments (RSS).
Entries (RSS) and Comments (RSS).
December 8th, 2008 at 4:02 pm
It would seem that CEO abstention from bonuses (and in some cases, even salaries!) is gaining favor, perhaps we are seeing the pendulum swing back on the ratio of executive compensation to average employee compensation …
(see figure 3, p 58):
http://faculty.chicagogsb.edu/workshops/AppliedEcon/archive/pdf/FrydmanSecondPaper.pdf
Although for it to get back to the 50X-60X regime that we had up until the 1990s, that may take a while.
In any event, prolly just another signpost on the way to the Twilight Zone, another indicator of how bent our economy has become. Ballooning debt, outa-control-leverage, and obscene executive compensation.
I would not mind seeing legislation to tax the living daylights out of corporations that pay, and individuals that receive, executive compensation above 60X employee compensation in public companies, on an averaged basis over the prior 5-to-7 years. Prolly not worth the time to legislate, tho’, as the corporation’s legal and accounting resources would be diverted from the important business of the company’s business to finding ways to shovel obscene amounts into deferred compensation plans, retirement plans, and golden parachutes.
December 8th, 2008 at 4:26 pm
Yikes! Don’t do that. Do you know what it’s like to read, “Japan Airline’s CEO Slashes..” the first time through when you don’t know how the sentence ends?
December 8th, 2008 at 5:15 pm
lots of talk about nationalized healthcare, the ongoing nationalization of wall street, and i propose (a nutso) nationalization of executive compensation:
http://www.gongszeto.com/journal/2008/12/3/ethical-capitalism-20-towards-a-nationalized-executive-compe.html
don’t freak out too much – it’s only a thought exercise.
best,
gong szeto