Moral Outrage
Whew! God help us!

Excessive Compensation for Bailout Barons

One year after the global banking system collapse, the IPS Annual Executive Excess report — “America’s Bailout Barons” — shows that the perverse system of executive compensation which contributed to the financial meltdown is still thriving for top bailout recipients.

Last April, President Obama spoke out against excessive executive compensation, saying, “In order to restore our financial system, we’ve got to restore trust. And in order to restore trust, we’ve got to make certain that taxpayer funds are not subsidizing excessive compensation packages on Wall Street.”

But the fact is we haven’t. The IPS report focuses on the twenty banks that have received the most bailout money from the federal government and shows that the banks and bankers are still acting and being rewarded as if they are Masters of the universe — abetted by a government that is failing to take on the status quo.

According to the report, a generation ago top execs rarely earned more than thirty to forty times the pay of the average American worker. But now top execs make an average of 319 times more than the typical worker. For the top twenty financial industry execs the divide is even greater — 436 times more than the average worker in 2008.

In the past three years, the top five execs at the twenty US financial firms receiving the most Bailout Bucks took home pay packages worth a staggering $3.2 billion — an average of $32 million each. Even though their twenty firms laid off more than 160,000 people since January of that year.

As IPS senior scholar and Nation contributor Chuck Collins put it, “Public officials in Congress and the White House hold the pin that could pop the executive pay bubble. They have so far failed to use it.” It’s time to use it.

The Nation

Advertisements

No Responses to “Excessive Compensation for Bailout Barons”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: