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.







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?
Posted by: TomC | November 1, 2008 11:57 AM