Wednesday, February 4, 2009

Brother, can you spare a dime?

{Note: After this announcement Bank of America shares dropped another 11%. They're now below $5/share--lowest they've been since 1990.}

Even though we haven't nationalized the banking system {yet}, Barack-star is capping executive pay at banks receiving federal bailout money at $500,000. That sounds like a lot of money {especially to me since my company just announced a wage freeze}. But the cap doesn't sound particularly American.

Here's what these three guys are facing in their personal budgets:
Vikram Pandit, Citigroup, -84%
Kenneth Lewis, Bank of America, -98%
Rick Wagoner, General Motors, -92%

If they're any good at running a company I'd think they'd just go somewhere else and pass the bank headache off to someone else.

BTW, the $500,000 salary cap isn't retroactive to any of the bailout money already handed out.

“I won twenty-eight games in thirty-five and I couldn't believe my eyes when the Cards sent me a contract with a cut in salary. Mr Rickey said I deserved a cut because I didn't win thirty games.” Dizzy Dean

1 comment:

Ed. Tritschler said...

You could be a Bank of America retiree!!!!!!