by Dewy Morris

Created on: October 20, 2008

Excessive executive compensation is one of the main culprits that helped bring down the economy at large. The CEO and chairman of Lehman Brothers is a prime example of this abuse of public interest and fiduciary betrayal of the investors trust in terms of their shares in stocks. Mr. Richard Fuld took home $480 million dollars in compensation between the years 2000 until 2007 according to congressional hearings. Mr. Fuld sought approval from the compensation committee for 20 million dollars in special payments for three of the departing executives four days before filing bankruptcy of Lehman Brothers., the largest bankruptcy in US history. At this time on behalf of Lehman Brothers he sought bailout from the US government. When the public owns the company then salaries should be kept in check by an outside agency rather than the board of directors and its CEO's, a third party that has no interest in the potential earnings of the company for personal gain. When the public's interest is at stake then the risk is high. No one should be allowed to mishandle someone else's money in trust and be exempt from both private and public scrutiny. If the taxpayer is going to foot the bill then the salaries should be set to government caps because now the company no longer is held in the private sector and becomes the property of the people through government intervention. All assets both at home and abroad should be liquidated and distributed among the shareholders. The CEO's would forfeit their shares and would serve to recover loses and paid back to the general public shareholders.

If salaries aren't kept in check in regards to public trust and interest then that gives rise to "hyperinflation", another words an extorted value of the stock, commodity rather than the actual value, based on performance, determined by supply and demand. Hyperinflation, over compensation and overstated value along with low wages among the middle class is the bedrock of the overall meltdown in the housing and credit market which affects the economy in which our society depends on. We are a credit driven economy!

The government should not bail out the system, the system is bankrupt, and it's insolvent. Let the system go down the tubes and let the market correct itself. Once the market stabilizes through consumer confidence then the flow of money can once again flow freely, the channels become open through spending.

The government should take control of the banking system and take it out of the hands

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