Days of charm and glamour for top US executives are over
Friday, 12 June 2009
From Fazle Rashid
NEW YORK, June 11: The attraction and charm of glamour, power and riches that go with the offices of the top executives of the US corporate giants are not likely to revert to the golden pre-recession era. The days of the arbitrary fixations of pay and perks are perhaps over. The days of using executive jets and playing golf on company expenses will turn into memories.
The Treasury Department yesterday announced the appointment of Kenneth Feinberg, a reputed lawyer, to the newly created all powerful office vested with sweeping powers to oversee pay and perks of employees at the seven companies that have taken taxpayers money. The companies that will come under supervision are AIG, Bank of America, Citigroup, General Motors, Chrysler and the financial windows of the two auto giants. The move is seen as an effective end to the concept of the market economy. The new arbitrator, with broad discretion, will have the authority to set salaries and bonuses of the top most five executives and 20 other highest paid employees under them. A new legislation in the offing will give shareholders right to vote on pay levels in all companies.
Ten large financial institutions that have been allowed to repay government loans to free themselves from clutches of any control face no such restrictions. It is generally agreed that greed and lust of the corporate executives was a contributing factor to the present financial crisis. Executives with pay less than $500,000 will face no scrutiny.
The mandate that Kenneth Feinberg enjoys is among the most sweeping given to an individual to oversee compensation of an industry reflects the federal government's increasingly visible hand in corporate affairs, the New York Times wrote today.
NEW YORK, June 11: The attraction and charm of glamour, power and riches that go with the offices of the top executives of the US corporate giants are not likely to revert to the golden pre-recession era. The days of the arbitrary fixations of pay and perks are perhaps over. The days of using executive jets and playing golf on company expenses will turn into memories.
The Treasury Department yesterday announced the appointment of Kenneth Feinberg, a reputed lawyer, to the newly created all powerful office vested with sweeping powers to oversee pay and perks of employees at the seven companies that have taken taxpayers money. The companies that will come under supervision are AIG, Bank of America, Citigroup, General Motors, Chrysler and the financial windows of the two auto giants. The move is seen as an effective end to the concept of the market economy. The new arbitrator, with broad discretion, will have the authority to set salaries and bonuses of the top most five executives and 20 other highest paid employees under them. A new legislation in the offing will give shareholders right to vote on pay levels in all companies.
Ten large financial institutions that have been allowed to repay government loans to free themselves from clutches of any control face no such restrictions. It is generally agreed that greed and lust of the corporate executives was a contributing factor to the present financial crisis. Executives with pay less than $500,000 will face no scrutiny.
The mandate that Kenneth Feinberg enjoys is among the most sweeping given to an individual to oversee compensation of an industry reflects the federal government's increasingly visible hand in corporate affairs, the New York Times wrote today.