Blog on the Run: Reloaded

Wednesday, August 19, 2009 8:06 pm

Employee compensation

Filed under: You're doing WHAT with my money?? — Lex @ 8:06 pm
Tags: ,

I know a lot of people whose pay effectively has been cut 5% through furloughs. And I know some people whose pay effectively has been cut 20% by 20% pay cuts. And I know some people, including myself, whose pay effectively has been cut 100% by virtue of no longer having a job.

So I’m a little puzzled as to why the new CEO of AIG, a company 80% owned by the American taxpayer, a company that claimed a “profit” this past quarter only on the backs of the American taxpayer, a company whose main function for the past year appears to have been hoovering money out of the American taxpayer and distributing it to Goldman Sachs, has to be paid $7 million a year.

But wait, I hear some of you saying, more than half that’s in stock, not cash. Yeah, and how much would that stock be worth if the taxpayer weren’t propping it up?

Pay this guy $500K. (The president of the United States only gets paid $400,000 a year, and he has certainly had a better year than the CEO of AIG.) Give him a meal allowance with at least some tenuous connection to everyday reality. (Eating lunch at McDonald’s every once in a while probably won’t actually kill you. Not directly, anyway, especially if you order the chicken wrap or something.) Make his butt fly coach. Even under those terms, there are still plenty of competent people who would kill to have the job. If he wouldn’t want it under those conditions, let’s hire one of them.

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