"the height of irresponsibility"......

Discussion in 'The Back Room' started by Motorcity Gator, Jan 30, 2009.

  1. Motorcity Gator

    Motorcity Gator Well-Known Member

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    ....or arrogance....take your pick.

    350 billion dollar bailout in Sept./Oct. and 18 billion in bonuses paid when?

    After the bailout money was distributed I'll bet.

    These guys have brass balls.

    Thanks for calling these jerks out BO.
     
  2. gipper

    gipper Well-Known Member

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    18 billion? Isn't the the approximate size of the bailout for the entire auto industry? Do these guys think that they are that important to society? They think that they're pro athletes?
     
  3. Motorcity Gator

    Motorcity Gator Well-Known Member

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    As one multi-millionaire NBA player holdout said so profoundly once upon a time....

    "They gots to feed their families"..... :shock:
     
  4. Sid

    Sid Well-Known Member

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    Those who would criticize this without first understanding the prevailing pay structure in the securities industry are ill-informed and reacting in a knee-jerk and stupid way, which includes our president. It is standard practice in the business to pay a low fixed salary to "keep the wolf away from the door" and to pay the bulk of earnings to producers in the form of bonuses tied to production. It's how I make my living. For all we know, the "bonuses" being criticized may represent a reduction from prior years for the producers in question, hence a much lower income for 2008.

    If you criticize something you know nothing about, you open yourself to being criticized. Our president has committed a big gaffe on this one, but because of the prevailing negative emotion toward Wall Street, he will get a pass from the media.

    The securities industry also should be criticized but not for the bonuses......for not getting in front of the issue and clearly communicatiing to the public what I have explained above.
     
  5. Motorcity Gator

    Motorcity Gator Well-Known Member

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    If what you say is precisely true then I agree we should be seeing some rebuff from the Street of this criticism that's being levied.

    Heck....there is even a song out now by country star John Rich called "Shuttin Detroit Down" in which the Wall Streeters are vilified.

    http://www.freep.com/article/20090129/COL27/90129001?imw=Y

    http://www.youtube.com/watch?v=GoIXxFSq7og
     
  6. George Krebs

    George Krebs Well-Known Member

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    I saw the lady who is responsible for overseeing the bailout funds interviewed on Neil Cavuto's show yesterday.

    I was stunned when she admitted that they are still trying to determine where the initial $350Bil went and how it is being used.

    This would be hilarious if not so tragically important.
     
  7. BuckeyeT

    BuckeyeT Well-Known Member

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    Thank you Sid.....I would expect a completely different reaction if the headlines read as follows: "Wall Street compensation shows record declines......"

    ......but it wouldn't be anywhere near as much fun. Carry on bashers.....
     
  8. gipper

    gipper Well-Known Member

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    Silly me. I thought "bonuses" came from profits. And I thought that bailouts were needed by businesses that weren't profitable.
     
  9. BuckeyeT

    BuckeyeT Well-Known Member

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    Good luck rebuilding your business without your most valuable asset - your best people.......

    Silly me, I thought everyone did business with us because we had such a pretty face.
     
  10. Motorcity Gator

    Motorcity Gator Well-Known Member

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    Me too George....me too.

    Good thing all that talent received their just bonuses and total compensation packages or they would take all that talent and walk.....all the way to the unemployment line where they belong.
     
  11. Sid

    Sid Well-Known Member

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    Not necessarily if an individual's agreed-upon pay structure consists of salary-plus or even 100% commissions/bonuses with draws against anticipated payouts. When I was in municipal bond sales, my income was 100% commission/bonus-based.

    I don't know the details, but neither does anyone else, including the president. If the bonuses represent additional income despite losses and not basic compensation, then shame on them. If they represent basic earnings, then shame on the critics for putting their feet in their mouths.

    MCG, you just don't get it.
     
  12. Motorcity Gator

    Motorcity Gator Well-Known Member

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    I do get it.

    In my business when you do a crappy job or your company does a crappy job....or when clients do such a crappy job that they have a severe negative impact on your company's business then you are at serious risk of making less money in such a year or perhaps worse and you get laid off....as in my case.

    Why should it be so different for these guys? What have they done to deserve better than most Americans?
     
  13. Motorcity Gator

    Motorcity Gator Well-Known Member

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    Here is a comment from a poster on CNN....

    "America will not name this mess terrorism, but that is exactly what it is, without bombs, financial terrorism"

    Maybe a little extreme but you can imagine the rest of the comments that are posted.....
     
  14. gipper

    gipper Well-Known Member

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    By definition a bonus is
    "something in addition to what is expected or strictly due." A commission is not a bonus. It's expected and is due.
     
  15. IrishCorey

    IrishCorey Well-Known Member

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    I think that comment is histrionics personified personally...

    So Dave,

    If someone is working on a 100% commissions-bonus contract, he shouldn't be paid?
     
  16. Motorcity Gator

    Motorcity Gator Well-Known Member

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    I didn't get all commissions due me....I got a severance instead.

    But has anyone verified these are just commissions from past sales that were paid?
     
  17. IrishCorey

    IrishCorey Well-Known Member

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    has anyone verified that they aren't?
     
  18. George Krebs

    George Krebs Well-Known Member

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    Have we determined what was paid as commission and what was paid as bonus? Two different animals.
    One thing I've learned in 30 years in business... your highest paid employees are not necessarily your best or most valuable.
     
  19. BuckeyeT

    BuckeyeT Well-Known Member

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    Typical compensation sturcture includes salary, cash bonus and some equity component - e.g., options, restricted stock, etc. In cases that I am familiar the percentages were close to 1/3 each. So in essence, 2/3 of total compensation was at risk based on performance - of which there are two distinct components. Individual performance and company performance......it would be easy to envision an individual in these large companies with many, many diverse business lines who performed above and beyond expectations and exceeded any and all of his compensation benchmarks and had absolutely nothing to do with the abysmal performance.

    Now all these guys are not going to receive that portion of their compensation based upon the company's dismal performance and the stock compensation that they received in years past is now not worth squat.....do you really believe that these individuals are not due anything based upon their individual performances.....and do you really believe that your company will not suffer when they leave and take their talents and book of business across the street to a competitor with a more rational compensation policy? That is what you're suggesting here.....you guys are smarter than that.
     
  20. gipper

    gipper Well-Known Member

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    So if the guy across the street is losing money too and keeps losing money because of inflated compensation that's "rational" (I give you the 08 Tigers and Yankess as perfect examples.)