Editor's Pick
JUNE 24, 2009 2:01PM
Rate: 8
Compensation? Sure, whatever, says Uncle Feinberg
Pandit: My $1 salary will now be $1.50
pie in the sky (photo: time.com)
If you work for Citibank, good news! You're probably going to get a raise if the bank counts you as a valuable employee. Big raises! The bank wants you to stay, and since your bonus might suck this year, perhaps a big fat pay raise, some stock options and an even a better office chair might make you reconsider ditching.News of Citi's plan to increase compensation packages for the employees because of governmental ceilings on bonuses was leaked by an anonymous source from inside the corporation.
Apparently Citi plans to raise base salaries as much as 50% in some cases. In addition, employees will get generous stock options.
Does the "new" Citi think it is a Google or an Intel? Does it realize that almost 80% of start-ups fail? Most implode, not because of money, but because of bad business planning, and poor managment selection.
It seems that bank czar Feinberg does not actually get the final word on salary compensation. His oversight, like traffic signals and other rules of the road, are merely strong suggestions. The bank can reject them and restyle pay packages any way they enjoy.
So it seems that although we've given Citibank billions of our tax dollars to overhaul their managment and business practices for the better, they've only dug the hole deeper with this move.
Bonuses are one time payouts that don't incur other expenses for the corporation. Increasing compensation, gifting stock options by the poundful (even if they are only worth $3) are expensive and impact the bottom line. Even in a bad year (um, like this one) the corporation is still contractually obligated to honor salary bases where bonuses can be recalculated.
What were they thinking? Oh yeah. They weren't.
Comments
Very interesting. Thanks, L&P
I'm not the type of person that can rationalize all this mindless greed and NO remorse for jobs poorly done and sinking our economy.
Without restrictions it's pretty obvious these buffoons will plunge right back into the money-pit and take us further down (but not before reaping the rewards and ripping us off...again).
Make no mistake, this is a form of retardation. Homer Simpson will continue to reach into the boiling pot to get the lobster. He's addicted to lobster. Nothing and nobody else matters.
Without restrictions it's pretty obvious these buffoons will plunge right back into the money-pit and take us further down (but not before reaping the rewards and ripping us off...again).
Make no mistake, this is a form of retardation. Homer Simpson will continue to reach into the boiling pot to get the lobster. He's addicted to lobster. Nothing and nobody else matters.
Thieving bastards. Since my money is being used to compensate these people doesn't that give me a seat on the board? I cast my vote to cut the pay to minimum wage for all of them until the debt they owe the taxpayers is paid in full with the current retail level of interest. Not the prime rate, the worst rate that they would charge one of us for a loan, an unsecured personal loan. Lets check their experian credit score too and add some more fees and the right to raise the rate if they are late. Better yet, let's just withdraw our tax money since Citi doesn't think that our money is worth as much as theirs.
Oh, they're thinking alright. It's the same thinking that got us all into this mess. Their concept of the reality that most of us live in is skewed at best and larcenous at worst. I just don't think they care what any of the rest of us common folks think. The limits on conditions on all of this was taken out by Paulsen and Bush at the last second, before signing the bill, if I recall right. I think we are talking about the first stimulus package for the bank bail out. The TARP fund.
Can we stop with the bailouts please? Thanks for this!
Thanks Steve!
Jay - love the Homer analogy. Perfect.
bobbot - tell me how you really feel! seriously, they are being pretty damn cavalier with our money.
MR- it is indeed. I think they want to think about the rest of us, or think it is for our own good. Has to be something depraved.
Deborah - there is a great deal of the same sentiment out there. to let them sink or swim on their own. perhaps it is time?
By the way, adsense thinks I'm talking the "lottery" so it is promoting Vegas. Too funny!
Jay - love the Homer analogy. Perfect.
bobbot - tell me how you really feel! seriously, they are being pretty damn cavalier with our money.
MR- it is indeed. I think they want to think about the rest of us, or think it is for our own good. Has to be something depraved.
Deborah - there is a great deal of the same sentiment out there. to let them sink or swim on their own. perhaps it is time?
By the way, adsense thinks I'm talking the "lottery" so it is promoting Vegas. Too funny!
No comments:
Post a Comment