Seems they've wet their diapers over the Obama Collective's plan to slash executive salaries.
Many of the firms, which have together received more than $300 billion in taxpayer aid, issued conciliatory statements, but Bank of America said the ruling would put it at a disadvantage in competing with companies not under the pay czar's thumb.Some people (who haven't thought things through very well) have latched on to the quote and hit the panic button, warning of a Galtian response to the pay cuts (via Cup O' Joel):
"People want to work here, but they want to be paid fairly,"
saidwhined BofA spokesman Scott Silvestri.
If the administration actually follows through, most of these executives will quit and get higher paying jobs elsewhere. Executives not directly affected by the pay cuts will also quit when they see their prospects for future salary gains have been cut. Chaos will be created at these firms as top people leave in droves. Will the administration then order people back to work?Like I said, I've got a couple of thoughts on this, and I'm going to try to keep it brief.
First, this whiny weasel of a bank executive is vastly overstating the risk of a "Galtian" exodus of talent. (Can you imagine? A bank executive not being 100% honest?) Yes, the reduction is a 90 percent cut over their pay in 2008. But read the fine freaking print: It only applies to "the remainder 2009..."
That's right, these poor, deprived bastards are going to have a whole two months of punishment for the 18-months-and-counting depression they've caused. Then, it's back to buying disposable superyachts on the taxpayer dime.
Secondly, even if every single bank executive affected by this pay plan decided to take his keys to the executive Korean massage parlor and crawl into a Randian hole in southwest Colorado, that's only 175 people. I say good riddance. Don't let the balloon payment hit you on the way out. By all rights, these people should be out of work anyway.
Which brings me to my final point. If you're going to run you industry into the ground (oh, and the rest of the global economy, to boot) and then go crying, hat in hand, to the government and beh-heh-heg for a bailout, and if the popular sentiment is hard enough against you, don't fuckin' be surprised when the Chief Executive (your new boss, btw) grabs some political points by cutting your pay.
Welcome to the world you created.
tagged: executive pay, Kenneth Feinberg, Scott Silvestri, economy, Galt, Rand, politics