"Treasury pay czar 'very concerned' pay rules could cause bailed-out firms to lose talent."
I blogged about this earlier here, here, and here.
Showing posts with label Pay Czar. Show all posts
Showing posts with label Pay Czar. Show all posts
And So It Begins...
From the Washington Post, "Top employees leave financial firms ahead of pay cuts". A snippet:
Many executives were driven away by the uncertainty of working for companies closely overseen by Washington, opting instead for firms not under the microscope, including competitors that have already returned the bailout funds to the government, according to executives and supervisors at the companies.
"There's no question people have left because of uncertainty of our ability to pay," said an executive at one of the affected firms. "It's a highly competitive market out there."
(Emphasis added)
Link found via MR.
Many executives were driven away by the uncertainty of working for companies closely overseen by Washington, opting instead for firms not under the microscope, including competitors that have already returned the bailout funds to the government, according to executives and supervisors at the companies.
"There's no question people have left because of uncertainty of our ability to pay," said an executive at one of the affected firms. "It's a highly competitive market out there."
(Emphasis added)
Link found via MR.
"Pay Czar to Slash Compensation at Seven Firms"
Here.
I believe the federal government has legal jurisdiction to do this given TARP rules (though, like the bailouts, I don't believe it's constitutional). The tax-payer who is part of the generation that will have to pay for this mess in me should be happy to hear this. But logic always wins out.
I think it was Thomas Sowell who said every economist (or economics enthusiast) should always ask, "then what?" Indeed, then what? This policy strikes me as a major disincentive to any current or potential talented manager who could help revive these failing companies. I mean, wasn't that the whole point of bailing them out in the first place? It's like telling the future general manager of the Pittsburgh Pirates he can only make 90% of what the market charges. For the worst job in baseball. What general manager in their right mind would take that job?
Sure, they'll score some short term political points, but what will be the long-term real effects be? If anything, the Administration should be giving potential execs and managers massive incentives to take on what seems to be terrible positions.
Now I wish Congress and the White House would get out of this situation to begin with. But if they do decide to meddle and tinker, the least they could do is demonstrate a little managing common sense.
I mean, as Alex Tabarrok points out at MR, have any of these guys even glanced at Atlas Shrugged?
I believe the federal government has legal jurisdiction to do this given TARP rules (though, like the bailouts, I don't believe it's constitutional). The tax-payer who is part of the generation that will have to pay for this mess in me should be happy to hear this. But logic always wins out.
I think it was Thomas Sowell who said every economist (or economics enthusiast) should always ask, "then what?" Indeed, then what? This policy strikes me as a major disincentive to any current or potential talented manager who could help revive these failing companies. I mean, wasn't that the whole point of bailing them out in the first place? It's like telling the future general manager of the Pittsburgh Pirates he can only make 90% of what the market charges. For the worst job in baseball. What general manager in their right mind would take that job?
Sure, they'll score some short term political points, but what will be the long-term real effects be? If anything, the Administration should be giving potential execs and managers massive incentives to take on what seems to be terrible positions.
Now I wish Congress and the White House would get out of this situation to begin with. But if they do decide to meddle and tinker, the least they could do is demonstrate a little managing common sense.
I mean, as Alex Tabarrok points out at MR, have any of these guys even glanced at Atlas Shrugged?
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