Public Service Announcement: Executive Compensation Is Not A Matter Of Public Opinion - 15 Mar 2009

Sunday, March 15, 2009

Public Service Announcement: Executive Compensation Is Not A Matter Of Public Opinion

By
Rob
on March 15, 2009 at 04:33 pm

This editorial from the Bismarck Tribune,
continuing the populist class war started against Blue Cross Blue
Shield by “Republican” Insurance Commissioner Adam Hamm, says “Execs
don’t need that kind of money.”  Whatever “that kind of money” means is
apparently a matter of public opinion.  Because in our current
political atmosphere, companies can’t just compensate employees as they
see fit.  They must compensate them as the public sees fit.

Which is a little ridiculous isn’t it?  We live in a free country,
right?  One with a free market?  And don’t we always brag about
Americans being able to achieve all they want to achieve?  Apparently
not if your the executive of a large company, and if we’re not careful
that stupidity is going to spread like a cancer.

And I say that with full understanding, and even empathy for, the
feelings of frustration that surround news of insurance companies that
have 90% market share giving executives mutli-million dollar golden
parachutes and bailed out bank executives throwing themselves posh
parties and cushy resorts.  But rather than pushing for government
intervention into the pay of private sector executives (a road we do
not, believe me, want to go down) maybe we should ask ourselves why we
were dumb enough to give the bailed out companies in the first place? 
And why certain companies are able to dominate a market in such a
complete way?

I posted yesterday that I am tired
of hearing about what bailed out companies do with their money, and
it’s getting more and more true.  Instead of being outraged every time
we hear of some new corporate stupidity, maybe we should ask why we’re
giving the people responsible for the stupidity the means to do it?

If executives are spending their own company’s money, and running
their own companies into the ground, that’s not the public’s business. 
Let them implode, because failure is the best solution for that kind of
stupidity and it usually results in someone who is not nearly as stupid
taking over.

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