According to Nicholas D Kristof at the NY Times, C.E.O.’s of large public companies average 344 times the average pay of workers, and tax code encourages overpaying executives; these cost taxpayers more than $20 billion a year. What do we get for all this cash? According to studies, they do well – two thirds are “better than average.” (Only when you fuzzify the numbers can more than 51% be above average.) They make profits by firing workers and shipping work overseas, not by contributing to the economy.
And so you see the problem. We paid for their huge salaries out of our tax money, and now we’re going to have to pay again to rescue their mismanagement of these puffed-up charlatans.
This was most acute in the financial sector. Multiple millions in annual bonuses, plus the salary, perks, and privilege.
The bailout is a bad deal unless the US gets ownership stake and those who got us here share the cost.
source: NYT Blogs