Bitches Got Owned
Fri, 03/20/2009 - 15:51 — Jinghao
From the New York Times:
Spurred by anger over A.I.G. bonuses, the House voted 328 to 93 to levy a [retroactive] 90 percent tax on bonuses paid by any company owing more than $5 billion in bailout money.
...In a statement, President Obama suggested he was supportive of the legislation, urging Congress to deliver a “final product that will serve as a strong signal to the executives who run these firms that such compensation will not be tolerated.”
Since this applies to every company owing more than $5 billion in bailout money, this would effectively eliminate the "keeping top talent" argument, the primary reason why exorbitant bonuses are tolerated, because every other company will be limiting its bonuses.
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Comments
Oh snap. If they had that
Oh snap.
If they had that much support for 90%, I wonder if they could have pushed it over 100%?
In that case they'd outlaw
In that case they'd outlaw bonuses completely, which would mean that any executive of a company who cares more about his bonus than his company's well-being will choose to die with his company (while getting paid exorbitant bonuses) than to ask the treasury for some loans.
Well, of course, but I'd
Well, of course, but I'd argue that if they're giving bonuses while still receiving money from the government, then they probably don't really need that much money from the government in the first place. Thus far, the distinction as to which companies prefer the bonuses over the good of the company would have already been drawn.