Thursday, September 25, 2008

Rough landing

Part of the hubbub raised against the proposed bailout plan involves the subject of CEO salaries, something that always generates strong emotions... Suggestions run the gamut from 'departing CEOs should forfeit their salaries and retirement packages' to the (ridiculous) McCain suggestion that CEOs of companies that accept bailout funds "... shouldn't make more than the highest-paid government official' (i.e. $400,000). The second suggestion isn't even worth laughing at... As to the first, this blogger's position is that companies involved (and government, etc.) should honor the contracts they have with these executives.

If these contract have provisions that departure bonuses, etc. can be withheld for instances of poor performance, malfeasance, etc. then these provisions should be invoked. Otherwise the CEOs should be paid in full, any bloviating by Congress notwithstanding.