Wednesday, November 21, 2012

Must We Lower Entitlements Expectations for Corporate Executives?

Oh Noes! fixed Lloyd Blankfein's comments for him
A: You’re going to have to undoubtedly do something to lower wealthy people’s expectations — the entitlements and what rich people think that they’re going to get, because it’s not going to — they’re not going to get it.
Q: The private jets, the limousines, the golden parachutes?
A: You can look at history of these things, and public trading wasn’t devised to be a system that allowed executives to enrich themselves at the expense of the shareholder for 25 years... so there will be things that, you know, the compensation system has to be changed, maybe some of the benefits have to be affected, maybe some of the bonsues eliminated. But in general, management's perceived entitlements have to be slowed down and contained.
Q: Because we can’t afford them going forward?
A: Because we can’t afford them.

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