http://www.msnbc.msn.com/id/31522318/ns/business-us_business/
In response to restrictions placed on employee compensation for companies accepting federal bailout money, Citigroup will pay employees normally compensated with bonuses a higher base salary.
Way to go Congress! As I predicted, the free market economy has discovered a way around your regulations. But should conservatives, or anyone for that matter, be happy about this?
I support the payment of retention bonuses to those on Wall Street. Retention bonuses are just as they sound; they are not paid in lieu of exceptional performance. Instead, they are granted to employees who do not leave their posts to see if the grass is greener on the other side. Financial companies want their employees to stay put in order to keep valuable information and intellectual property away from their competitors. These bonuses are effectively part of their employee's salary; they just do not collect the money until they serve their time.
Congress began regulating bonuses because the very nature of a bonus to employees at a failing organization outrages the majority of hard working, middle class Americans (let alone organizations receiving tax payer money to stay afloat). However, I think the average American's disgust at these bonuses is unfounded. These employees, for the most part, are not really getting bonuses. They are actually getting delayed salary payments. Americans need to understand these people were smart enough to go into a high paying industry, and skilled enough to land a high paying job in that industry. High payments, either in salary or bonus form, come with the territory.
Retention bonuses are fine in my book, even to companies receiving bailout money. Performance bonuses to companies accepting government bailout money, however, clearly can not be tolerated. There is a big difference between the two.
Until we meet again, goodbye!
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