by Grant Van Wingerden

Created on: March 27, 2009

I'm only tackling this topic because I want to show that thinking on the issue of setting caps on executive perks need not be driven by other considerations such as personal interest or national pride, but be examined on its own merit.

If the government is bailing out a company then it has a right to put conditions on this transaction. Even the most ardent capitalist would insist that there be fair recompense for investing ones time and capital in a project. So why should the administration of the day be exempt from the same courtesy. Not to mention that, at the end of the day, it is the <i>taxpapers</i>' money. Just as it was the taxpayers' money that funds two wars in the Middle East.

Presumably the administration, acting on behalf of the American people, is wanting to see a return on its investment. This will not be achieved - at least not directly - by providing benefits to the few at the top, no longer just at the expense of the company they control, but the whole country. If that's not an appropriate time to rein in excess, then what is?

If it is enough for serial CEO, Al Dunlap jr, to take aim at the inefficiencies of mid level executives with their corporate Porsches then perhaps it is not just the social democrat who can see the folly of paying company heads outlandish sums while staff are being let go. I recognise that levels of responsibility should be acknowledged and rewarded but if this was even lightly applied to an actual achievement (i.e. net growth, greater share prices, improved market share) then why the hell would you consider rewarding them?

The type of leader who can motivate employees to improve production and thereby increase profits is the sort of guy you should be throwing money at. As bolshie as you may think me, I have no problem at all with wealthy entrepeneurs who strike it rich with their invention or idea. Talent and art find their own market price.

Voting among yourselves to decide how much more you'll all be given when the next round of redundancies goes through, on the other hand, shows a stunning lack of loyalty and gratitude. I would much rather see all those responsible for the company's success receive their share.

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