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Log inGrowing Sense Of Outrage Over Executive Pay
Growing Sense Of Outrage Over Executive Pay
by Outspoken on Sat Nov 15, 2008 2:56 pm
Growing Sense Of Outrage Over Executive Pay
By Heather Landy
Special to The Washington Post
NEW YORK -- The public's indignation over lavish executive pay has rippled beyond the circles of activist investors and corporate governance watchdogs, who for years have wrung their hands over compensation practices. It has spread even beyond grass-roots community organizers and public policy think tanks to people who make their living in the financial industry, like money manager William Fitzpatrick.
"This is a topic that doesn't really get a whole lot of attention during more benign economic times, but clearly this is something that really got away from us. As a profession, we really kind of fell asleep at the switch here," said Fitzpatrick, who helps oversee about $1 billion at Optique Capital Management in Milwaukee.
Compensation is being scrutinized as never before, especially on Wall Street, where the year-end bonus season is coinciding with a government bailout of finance companies. At a time when the average taxpayer already is feeling stretched, public money is being used to support an industry that paid out $33 billion of bonuses last year. Wall Street itself blames the compensation system for playing a role in the credit crisis by encouraging excessive risk-taking.
Fitzpatrick said there is little he, or his small investment shop, can do to stop the current crop of executives from pocketing every cent promised in their employment contracts. But he expects the runaway pay problem to work itself out, as chastened boards cut more modest deals with the next batch of hires.
Dallas money manager Don Hodges isn't feeling as patient. He has spent the past decade railing against excessive pay packages.
He protested quietly at first, avoiding stocks of companies with practices he considered to be abusive to shareholders. As his frustration built, he tried a new tactic, giving $50,000 to his alma mater, West Texas A&M University, to promote the teaching of corporate responsibility. The university used the gift to start courses this year in accounting ethics and corporate governance. The latter is required for finance majors.
http://www.washingtonpost.com/wp-dyn/content/article/2008/11/14/AR2008111403789.html?wpisrc=newsletter
By Heather Landy
Special to The Washington Post
NEW YORK -- The public's indignation over lavish executive pay has rippled beyond the circles of activist investors and corporate governance watchdogs, who for years have wrung their hands over compensation practices. It has spread even beyond grass-roots community organizers and public policy think tanks to people who make their living in the financial industry, like money manager William Fitzpatrick.
"This is a topic that doesn't really get a whole lot of attention during more benign economic times, but clearly this is something that really got away from us. As a profession, we really kind of fell asleep at the switch here," said Fitzpatrick, who helps oversee about $1 billion at Optique Capital Management in Milwaukee.
Compensation is being scrutinized as never before, especially on Wall Street, where the year-end bonus season is coinciding with a government bailout of finance companies. At a time when the average taxpayer already is feeling stretched, public money is being used to support an industry that paid out $33 billion of bonuses last year. Wall Street itself blames the compensation system for playing a role in the credit crisis by encouraging excessive risk-taking.
Fitzpatrick said there is little he, or his small investment shop, can do to stop the current crop of executives from pocketing every cent promised in their employment contracts. But he expects the runaway pay problem to work itself out, as chastened boards cut more modest deals with the next batch of hires.
Dallas money manager Don Hodges isn't feeling as patient. He has spent the past decade railing against excessive pay packages.
He protested quietly at first, avoiding stocks of companies with practices he considered to be abusive to shareholders. As his frustration built, he tried a new tactic, giving $50,000 to his alma mater, West Texas A&M University, to promote the teaching of corporate responsibility. The university used the gift to start courses this year in accounting ethics and corporate governance. The latter is required for finance majors.
http://www.washingtonpost.com/wp-dyn/content/article/2008/11/14/AR2008111403789.html?wpisrc=newsletter
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Plato (427-347 BC)
Plato (427-347 BC)
