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AP study finds $1.6B went to bailed-out bank execs

December 21st, 2008 . by TexasFred

AP study finds $1.6B went to bailed-out bank execs

Banks that are getting taxpayer bailouts awarded their top executives nearly $1.6 billion in salaries, bonuses, and other benefits last year, an Associated Press analysis reveals.

The rewards came even at banks where poor results last year foretold the economic crisis that sent them to Washington for a government rescue. Some trimmed their executive compensation due to lagging bank performance, but still forked over multimillion-dollar executive pay packages.

Benefits included cash bonuses, stock options, personal use of company jets and chauffeurs, home security, country club memberships and professional money management, the AP review of federal securities documents found.

The total amount given to nearly 600 executives would cover bailout costs for many of the 116 banks that have so far accepted tax dollars to boost their bottom lines.

Full Story Here:
AP study finds $1.6B went to bailed-out bank execs

This is the type of thing that MUST be stopped if this nation is ever to recover. I am not at all against a person being paid bonuses, even very large bonuses, but those bonuses must be earned. Earned by giving a stellar performance and by motivating those under your supervision to give an equally stellar performance.

If your business is failing, if it’s not performing at a profitable level, if it’s not making money for it’s owners and/or stock holders, WHY in the hell should anyone connected to the management OF that business get anything other than a motivational kick in the ass?

Rep. Barney Frank, chairman of the House Financial Services committee and a long-standing critic of executive largesse, said the bonuses tallied by the AP review amount to a bribe “to get them to do the jobs for which they are well paid in the first place.

As an example of how bad I feel this type of thing is, and how far out of control the finance people of this nation are, I agree with Rep. Frank 100%. I will take this one step further than Rep. Frank did however. We should not only stop paying huge bonuses for non-performance, executive salaries need to be cut drastically for non-performance as well.

Nothing motivates more than money for a business executive. Take it away from him and see just how fast he/she gets back down to SERIOUS, well managed and profitable business.

I have long believed that the power of the dollar is mighty, and it can, or the LACK OF can, motivate the masses to produce more efficiently. Penalize the executives, put them in the *poor house* and lets see if business in this nation doesn’t do a swift 180° turnaround!

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