The three companies combined lost more than $20 billion in the last two quarters of 2007, as investments related to subprime mortgages fell apart and the stock price tanked.
Why things need to change:
http://money.cnn.com/2008/03/06/news/exec_comp/index.htm?cnn=yes
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I always have a split opinion on the issue of CEO compensation. One part of me doesn't want to see any interference with private enterprise -- people should make as much as they can make as long as it is ethical and legal.
However, there seems to be something wrong about CEO running companies into the ground and leaving everyone else to pick up the pieces -- including taxpayers when the feds end up picking up part of tab.
I don't know what the answer is, because the cure could be worse than the ailment. Maybe shareholders would be wise to demand performance penalties that would reduce some of the golden parachutes when companies aren't run in a way that allows them to survive.
Same conflict with gas prices, don’t want the government telling businesses what they can charge for a product (nor do I think they should they be giving them tax breaks).
Healthcare is another one, record profits by companies that drop clients when they get sick.
Now banks, goosing up their profits with crummy loan policies.
WalMart helps their employees fill out forms for state-funded health programs instead of offering healthcare. Each Walton famiy member has around $20 billion.
Do you think the boundaries of what is ethical have eroded?
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