Why do the CEO of banks get away with all their money while the bank goes under?
October 14, 2008 7:29pm CST
I wonder how a bank can go bust and the CEO is still rich and walks away almost unscathed. That seems to happen too much. The ordinary people who trust their life savings to these people end up with nothing and the workers lose their jobs but the people who run these company's are rich and stay rich and there is something seriously wrong with that. They get massive salaries for running banks that fail and it does not bother them as they have got all their money safe. Not just banks but other companies as well. I just wonder if it cost them something maybe they would be more careful with other people's money. What do you think about this? Do you think it is fair that the CEO's can walk away from collapsed bank and companies with their huge payouts?
15 Oct 08
This has been more and more criticised over the past ten years, and I think that the growing public outrage about it is what is behind some European leaders promising that they will active4ly set out to bring to account and punish those whose greed and incompetence have brought about so many bank collapses. I hope that isn't simply empty rhetoric, and that the punishment comes in the form of massive fines and perhaps even imprisonment. But I'd feel better about it if those fines were specifically earmarked for hardship relief for those who suffered as a result of the actions of the companies. Of course it wont. it will simply disappear into the budget, bah! Lash
15 Oct 08
I would feel better if there was some penalty for failing in their duty to the investors. I have seen so many people walking away with millions so why do they care if they do their jobs well or not as they are set for life with the salaries and bonuses they get. I really think that the Government should regulate them. There should be some sort of cap on the payouts these people can get. They take way too many risks to increase profits for the shareholders and get bigger bonuses but when the bubble bursts they walk away loaded with money and the customers and workers get nothing. There is something criminal about the greed that brought about the latest recession.
15 Oct 08
me and a friend were having this conversation te other day as her company had recently announced redundancies and they have found out that the partners took a large sum of money hokme last year and didn't put anything back into the business. They have recently moved into a brand new building and are also spending an insane amount of things like christmas parties. this is very disconcerning for the people who are about to loose their jobs because someone simply can not manage finances and the partners deem themselves more important than the rest of the staff. The first rule of buiness is reinvestment and to always try and set finances aside for future upsets or economic downturns, its just plain greed nothing more to it.
18 Oct 08
That is terrible. I cannot understand how they can be so selfish and greedy. I have seen the same things in companies in Australia where people are getting sacked even though the company made record profits. In the process the work load does not change but the few who are left have to work harder under threat of more job losses while the company execs get huge bonuses. Something has to change.
18 Oct 08
agreed she has been so upset and the worst thing is that they are not explaining the redundancy process at all to her it's just shambles awful when you've worked 4 years put your heart and soul into the place and they rip the rug right out from under you.