This week the Irish government who now unwillingly own a huge chunk of bank of Ireland said it could do nothing about the chief executive's generous salary. This despite further losses at the bank. Meanwhile further cuts in the rest of the economy.
The executive compensation thing is a red herring. People keep talking about it because of the manifest unfairness of allowing these people to wreck the economy and still take home 100 times what their victims do, but reducing their compensation wouldn't bring back any jobs. The problem is that a million dollars is a huge amount of money for an individual and a drop in the ocean for a government or a bank. Taking the money from them to try to undo what they've done wouldn't make the slightest dent, so all it would do is to punish them. And if that's what you're after then stop with pussyfooting around and just put them in prison already.
There's a perception amongst the 'ordinary' people that those at the top scratch one anothers backs. The government spin is that we're all in this together but the reality seems to be different. It's not surprising when you see how politicians when they retire often go on to get directorships at banks. Or how in the case of our most toxic bank, the chief executive apparently used to personally handle loans to politicians and other influential people.
Politicians have talked the talk but when it has come to punishing those responsible nothing happens. Constitutional property rights are cited. They'd love to do something but their hands are tied or it would spook the markets or to paraphrase you the effect would be negligible so let's not bother. Much more would be raised by milking the masses some more.
"stop with pussyfooting around and just put them in prison already."
I'd love to work on this but they either broke the law or didn't. However, it might make a bankster think twice when they understand that illicit behavior could cause all their ill-gotten gains to evaporate. It's not ideal but it's a start.
