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| Companies Lose Money - CEOs get millions | |
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| Tweet Topic Started: May 29 2011, 05:02 AM (242 Views) | |
| George K | May 29 2011, 05:02 AM Post #1 |
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Finally
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http://www.iwatchnews.org/node/4749
$34 million for the top six executives? There's no way you can use any math to make that look not outrageous. GKSR2 |
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A guide to GKSR: Click "Now look here, you Baltic gas passer... " - Mik, 6/14/08 Nothing is as effective as homeopathy. I'd rather listen to an hour of Abba than an hour of The Beatles. - Klaus, 4/29/18 | |
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| jon-nyc | May 29 2011, 08:20 AM Post #2 |
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Cheers
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Actually it doesn't seem that outrageous when you break it down. 34MM for 6 people over 2 years = 2.8MM/year. Keep in mind the government pushed out the execs under which these firms blew up. Now you have two mega firms that between them handle the vast majority of the US mortgage market. Even if you want to change that, which pretty much everyone does, thats the actual situation you face and that ship isn't going to turn very fast. So you need people to run these firms. Where do you find them? In the executive ranks of other financial firms. THose execs know they aren't getting stock payouts like they do in their current firms, and they also know that there's a good probability that the firms will be broken up and sold as parts, perhaps with a rump firm retained by the gov't. In other words, no stellar future there. So the only way you get someone to run these firms is through cash guarantees. |
| In my defense, I was left unsupervised. | |
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| jon-nyc | May 29 2011, 08:22 AM Post #3 |
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Cheers
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(i know a bit about this having been approached by one of those two firms for a job last year) |
| In my defense, I was left unsupervised. | |
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| Jolly | May 29 2011, 08:54 AM Post #4 |
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Geaux Tigers!
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Who is actually worth $1M/year? |
| The main obstacle to a stable and just world order is the United States.- George Soros | |
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| Copper | May 29 2011, 08:59 AM Post #5 |
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Shortstop
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I think it is now more of a market price thing than a worth thing. I have watched a number of these high priced salaries come and go. Some might earn it, but in my experience it is a minority. |
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The Confederate soldier was peculiar in that he was ever ready to fight, but never ready to submit to the routine duty and discipline of the camp or the march. The soldiers were determined to be soldiers after their own notions, and do their duty, for the love of it, as they thought best. Carlton McCarthy | |
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| George K | May 29 2011, 09:00 AM Post #6 |
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Finally
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And the execs who were pushed out earlier were making even more (as is pointed out in the article). After all, isn't it true that at some point you've made enough money? Private companies like Oracle (Ellison), Disney (Iger), and Apple can pay as much as their shareholders allow. But, as was the scream a couple of years ago, the taxpayer paid for the bailouts of these "companies", and I wonder if the taxpayer is getting his money's worth. How are Freddie and Fannie doing these days? I understand that it costs to get the brightest and best, but at the price, performance should be part of the deal, and for companies like Oracle and others, they get it. Freddie and Fannie, not so much. Your point is well made, Jon, but, at what point do you earn "enough" money? Where is the "outrage" line to be drawn - if at all? Should it be whatever the market can bear? |
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A guide to GKSR: Click "Now look here, you Baltic gas passer... " - Mik, 6/14/08 Nothing is as effective as homeopathy. I'd rather listen to an hour of Abba than an hour of The Beatles. - Klaus, 4/29/18 | |
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| Copper | May 29 2011, 09:02 AM Post #7 |
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Shortstop
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Yes. The government can't draw this line or even make this claim. The government may have to make sure a market exists, but beyond that they should stay away. |
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The Confederate soldier was peculiar in that he was ever ready to fight, but never ready to submit to the routine duty and discipline of the camp or the march. The soldiers were determined to be soldiers after their own notions, and do their duty, for the love of it, as they thought best. Carlton McCarthy | |
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| Horace | May 29 2011, 09:49 AM Post #8 |
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HOLY CARP!!!
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Is that a euphemism for "bail them out if you need to, but hands off otherwise"? Do you think that the fact that we did bail them out changes the rules going forward, whether or not the bail-out was a good idea? The market was bearing it all just fine, till it didn't, at which time the taxpayers footed the bill. |
| As a good person, I implore you to do as I, a good person, do. Be good. Do NOT be bad. If you see bad, end bad. End it in yourself, and end it in others. By any means necessary, the good must conquer the bad. Good people know this. Do you know this? Are you good? | |
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| John D'Oh | May 29 2011, 09:56 AM Post #9 |
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MAMIL
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Maybe they could pay them in food stamps. |
| What do you mean "we", have you got a mouse in your pocket? | |
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| Renauda | May 29 2011, 10:07 AM Post #10 |
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HOLY CARP!!!
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Now there's a thought, MBA's at the trough. |
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| jon-nyc | May 29 2011, 02:47 PM Post #11 |
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Cheers
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That's simplistic. THe government (specifically, the Bush administration) made a decision to cover all the losses on Freddie's and Fannie's portfolios. Those losses were going to unfold over time. As for the execs at Freddie and Fannie, I don't know what their goals are so its hard for me to say how they're doing. But you have to answer that question in the proper context. |
| In my defense, I was left unsupervised. | |
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| George K | May 29 2011, 03:03 PM Post #12 |
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Finally
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3 years? Fannie Mae's losses returned after being profitable:
The salaries of the CEO's were in excess of $6MM in 2009 (specifically under the Obama administration) and they got a raise. Don't get me wrong, Jon. I'm not saying that these salaries were excessive. And I'm not saying that they were not. I'm saying that they were within an order of magnitude of private corporations whose leadership has been vilified for earning too much. The leadership of Fannie and Freddie have not delivered - at least in terms of profitability - and in when I hear the calls for accountability of CEOs in the private sector I listen for the same calls in the government sector and hear ... nothing. |
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A guide to GKSR: Click "Now look here, you Baltic gas passer... " - Mik, 6/14/08 Nothing is as effective as homeopathy. I'd rather listen to an hour of Abba than an hour of The Beatles. - Klaus, 4/29/18 | |
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| jon-nyc | May 29 2011, 03:33 PM Post #13 |
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Cheers
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The word you used was outrageous. Re the losses, they're going to fluctuate with the housing market - the losses no doubt went away when the housing market looked like it had bottomed - now its clear housing is in a double dip. |
| In my defense, I was left unsupervised. | |
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| George K | May 29 2011, 03:53 PM Post #14 |
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Finally
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Fair enough. I used that word considering the context of the article. In view of the outrage over other CEOs' salaries, is it as outrageous? Why is there silence? Do you really want me to believe that the public understands the vagaries of the housing market as an explanation for the losses of Freddie and Fannie, and that's why they're getting a pass in the outrage department? Do you think that, because these guys work for the gummint, their salaries are OK and we should appreciate the work they're doing to keep Freddie and Fannie afloat? Or, because of the double-dip, we should give them a pass? Is |
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A guide to GKSR: Click "Now look here, you Baltic gas passer... " - Mik, 6/14/08 Nothing is as effective as homeopathy. I'd rather listen to an hour of Abba than an hour of The Beatles. - Klaus, 4/29/18 | |
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| Copper | May 29 2011, 04:11 PM Post #15 |
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Shortstop
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No, heck no. |
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The Confederate soldier was peculiar in that he was ever ready to fight, but never ready to submit to the routine duty and discipline of the camp or the march. The soldiers were determined to be soldiers after their own notions, and do their duty, for the love of it, as they thought best. Carlton McCarthy | |
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