Sunday, October 05, 2008

Bail Out Influences Wall Street Golden Parachutes

The Congressional bail out of Wall Street attempts to limit golden parachutes for senior officers; especially for those that are walking away from impaired or bankrupt companies. The political optics are good. Lots of little people are suffering so we should make sure the big guys take some pain also.

Most compensation specialists are scoffing at the present legislation saying it will not effect or affect anything. They speak from a backroom technical perspective. Watch for the next bankruptcy or financial difficulty. If the CEO and other senior officers get golden parachutes the issue will become political. Investigations, audits, reviews will all become tools to get the bad business man.

Then let’s not forget that in a few weeks we will have a new administration. One way or the other the new guy’s will want to put their stamp on the bail out. Just handing out billions of dollars does not go un-noticed by politicians. They will keep their finger in the pie.