5 lies the big banks keep telling us (2)
Big lie No. 4: We get paid like rock stars, but we're worth it
When I ask companies why U.S. CEOs get such huge pay compared with their counterparts elsewhere in the world, the answer is invariably the same: We need to pay that much to attract the best performers.
But the mortgage meltdown has proved that to be a big lie. Paying CEOs well didn't keep these banks safe.
It's not just the CEOs, of course. Huge pay trickled down through the executive ranks to traders, all of whom who seem to have been too busy chasing short-term profits to focus on (or care about) the long-term risks. It's a case study in what the advocates have told me for years is wrong with the way executives get paid.
http://articles.moneycentral.msn.com/Investing/CompanyFocus/5-lies-the-big-banks-keep-telling-us.aspx?page=3
When I ask companies why U.S. CEOs get such huge pay compared with their counterparts elsewhere in the world, the answer is invariably the same: We need to pay that much to attract the best performers.
But the mortgage meltdown has proved that to be a big lie. Paying CEOs well didn't keep these banks safe.
It's not just the CEOs, of course. Huge pay trickled down through the executive ranks to traders, all of whom who seem to have been too busy chasing short-term profits to focus on (or care about) the long-term risks. It's a case study in what the advocates have told me for years is wrong with the way executives get paid.
http://articles.moneycentral.msn.com/Investing/CompanyFocus/5-lies-the-big-banks-keep-telling-us.aspx?page=3
