CEO Pay At Rescued Banks Exceeds S&P 500 Average
Wednesday, September 2, 2009, 10:41 AM | Leave Comment
The U.S. economy is seeing, some experts suggest, a rebound in general. But still, many folks who have lost jobs over the last year are still looking. Some have been out of work for more than a year. It’s hard to cope with all the everyday expenses for average Americans.
But the economy is not bad for every one. There are folks who not only are making extremely good money, but last year they got a bigger raise than other of their peers. The folks in question are the heads of the 20 banks that have received the biggest government bailouts.
According to a report released today, Sept 2, 2009, by the Institute for Policy Studies, those folks were paid nearly 37 percent more last year than other CEOs.
Collectively, those 20 banks have laid off more than 160,000 employees since the start of 2008, according to the study. On average, those CEOs earned nearly $14 million last year; CEOs of Standard & Poor’s 500 companies were paid an average of about $10 million in 2008.
The top five executives at those 20 banks collectively earned $3.2 billion from 2006 to 2008.
Doing simple Math,
$3,200,000,000 divided into 3 years * 5 executives = 15. That comes out to be more than $213 million per head.
- Is it outrageous? You bet it is.
- Can they sleep at night? You bet they can.
- Do they have a conscience? You bet they don’t.
Moral of the story
Outrageously large rewards for executives give executives an incentive to behave outrageously like flushing their companies down the drain. Only the President and the Congress are able to put a stop to this huge paychecks at the bailout companies.
What do you think?
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