baltimoresun.com

« Metro Washington: Middling home-price declines | Main | Ugly earnings report from Legg Mason »

October 29, 2008

Bank bosses show no interest in pay cuts

Today's column. First thing I noticed in the paper: I misspelled Wells Fargo CEO John Stumpf's name. Left off the "f." Heck. Read the whole thing here.

When taxpayers bailed out Chrysler Corp. in 1980, CEO Lee Iacocca acknowledged the extraordinary assistance with a sacrifice of his own. He cut his salary to a dollar a year and trimmed other executives' pay by up to a tenth.

"Although my reduced salary didn't mean I had to skip any meals, it still made a big statement in Detroit," Iacocca wrote in his autobiography. "It showed that we were all in this together. It showed that we could survive only if each of us tightened his belt."

Now, as the government launches a rescue a thousand times bigger, similar gestures are hard to find. At bank after bank uploading billions of government dollars, it's basically executive pay as usual.

Posted by Jay Hancock at 9:25 AM | | Comments (1)
        

Comments

Most bank bosses may be rolling in it, but some did lose their jobs when the bank merged or went bankrupt. In those cases, the value of the stock was greatly diluted or went to zero. Wouldn't that create Enron-like conditions for employees at all levels?

Post a comment

All comments must be approved by the blog author. Please do not resubmit comments if they do not immediately appear. You are not required to use your full name when posting, but you should use a real e-mail address. Comments may be republished in print, but we will not publish your e-mail address. Our full Terms of Service are available here.

Verification (needed to reduce spam):

About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
-- ADVERTISEMENT --

Most Recent Comments
Baltimore Sun coverage
Sign up for FREE business alerts
Get free Sun alerts sent to your mobile phone.*
Get free Baltimore Sun mobile alerts
Sign up for Business text alerts

Returning user? Update preferences.
Sign up for more Sun text alerts
*Standard message and data rates apply. Click here for Frequently Asked Questions.
Charm City Current
Stay connected