are we nuts? out of proportion

Are we nuts?

I stumbled upon the following article from elpais, main spanish newspaper:

El Gobierno puso ayer límites a la retribución de ejecutivos y consejeros de las cajas que han recibido ayudas del Estado, tras constatar que la mayor parte de las entidades han hecho caso omiso a la norma vigente desde el año pasado. La retribución fija de los directivos no podrá pasar de 600.000 euros (300.000 en el caso de las cajas nacionalizadas), lo que supondrá, de media, un recorte del 70% sobre lo cobrado el año pasado.

It basically says that bank which received help from the government will have to cap wage of top management to a maximum of 600.000 EUR.

Just to recall the situation:

– more than 20% of the population is looking for a job
– avg. salary is 1000EUR with lots of the few having a job paid less
– banks undoubtedly held a big share of responsibility in this situation (creating a giant real estate bubble by providing tons of money with insufficient ground, bubble which will turn the country for a longer than 10-year hard recession)

And with all of that, executives who made the bank go bankrupt (hence the government rescue package) will earn ‘only’ 600.000EUR a year in base salary at max! We are completely nuts! It should be 100.000EUR with no bonus or stock option plans.

To rephrase: you’re incompetent, was responsible for a huge recession, held your firm toward bankruptcy and we punish you by providing you with a 600.000EUR salary.
I don’t see any sense of responsibility here. No wonder they do whatever they want at the top… It’s big bucks, and totally risk free.

Yes we are nuts.



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