eRollover.com
By Mike Rowan
Finally! Executives Halting Bonuses due to 2008 Market Crash!
Lets put it this way. I want everybody to get paid, and get compensated as much as possible if their performance has been good for the company and for shareholders. However, this certainly has not been the case during the current mortgage crisis. As a result, ordinary investors have seen their 401k, IRA, and Retirement Accounts, plunge along with the market. When I saw the two articles that are briefly quoted below, I couldn’t help but feel that it was a step in the right direction.
“WASHINGTON (AFP) – Goldman Sachs CEO Lloyd Blankfein and six company leaders have renounced their 2008 bonuses, a company spokesman said Sunday.
Blankfein and the other company directors requested the company’s central committee in charge of bonuses not to make the payments due to the company’s poor performance in 2008. Their request was accepted, the spokesman told AFP.
“This decision applies to seven top executives,” he said.”
“Swiss bank UBS axed bonuses for top executives on Monday and said it would introduce a more transparent pay system in the most far-reaching changes on pay at a top European lender during the credit crisis.
UBS, which is struggling in the subprime crisis and whose shares slumped to a new all-time low on Monday, said Chairman Peter Kurer, Chief Executive Marcel Rohner and other executive board members would not get any bonuses this year.
Starting from 2009, top managers’ bonuses will be blocked for at least three years instead of being paid immediately and executives will receive variable pay if UBS results warrant.
Under the new system, the chairman will only be awarded a fixed salary.”
I really don’t want to beat a dead horse, but if ordinary investors are loosing their shirts, I have a problem with executives receiving multi-million dollar rewards for a lousy performance. As a small business owner, I don’t anticipate receiving any part of the Federal Bailout Package, and if I don’t perform, I don’t make money. With these moves, I feel a little bit better.
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Tags: 2008-Financial-Crisis, Executive Bonus, Executive Compensation, Goldman Sachs, investors, Shareholders, Stock Market, UBS
