Big Bonuses, Bad Business?
FROM CNN's Jack Cafferty:
High gas prices, slumping home sales and declining values and the whole sub-prime credit mess have combined to make 2007 a pretty tough year for a lot of people. The latest CNN poll shows 57% of Americans think the economy is already in a recession. But you wouldn't know it on Wall Street. Bonus checks at the big investment banking firms are up 14% this year. Four of the biggest investment banks alone - Goldman Sachs, Morgan Stanley, Lehman Brothers and Bear Stearns - will pay out $30 billion in bonuses.
Goldman Sachs CEO Lloyd Blankfein will get $70 million, and Lehman Brothers' CEO Richard Fuld will get a $35 million stock bonus. Morgan Stanley CEO John Mack and Bear Stearns CEO Jimmy Cayne are forgoing their bonuses this year. But they'll probably be okay.
Mack got more than $40 million in stocks and options last year. Cayne received a bonus of more than $33 million.
Average Americans who invested in these banks paying out these big bonuses are probably scratching their heads. If they held stock in most of these companies, they saw values plunge up to 45%.
Here’s my question to you: Is it wrong for Wall Street to reward its employees with big bonuses this year?
Interested to know which ones made it on air?
Lorelei from Boynton Beach, Florida writes:
It sure is a disgrace to give such big bonuses to Wall Street. They don't deserve them. The small investor is being squeezed out and once again the middle class is taking it on the nose. There are a great many things wrong in America and Wall Street is one of them and Congress is another.
Greg from Pennsylvania writes:
Life isn't fair, Jack. In a perfect world there would be no poverty, no one would go hungry or homeless, people would be hired for and work in the jobs for which they were best suited, good performance would be rewarded and poor performance would be penalized. In reality, corporate executives are outrageously paid, receive monstrous bonuses for mediocre work and multi-million dollar severances after losing billions for the companies they run. It's as futile as complaining about the weather.
Salem writes:
Goldman Sachs CEO, Lloyd Blankfein, deserves his massive bonus for making risky, but shrewd decisions that have dramatically increased profits for their firm. Under Blankfein's watch, a tiny group of Goldman traders were allowed to bet against the subprime market, which resulted in nearly 4 billion dollars of profit. For the other firms that have suffered greater loss, keep in mind the employees at investment banks work insane hours, often 7:30 am until midnight. It makes sense to give them a big bonus.
Anthony from Staten Island, New York writes:
Instead of granting bonuses to its employees, Wall Street should return the money to the U.S. Treasury to pay off the amounting deficit we have from this Administration. They've seen this surplus of money because of the outsourcing and tax cuts for the wealthy. Or maybe we should allow these CEOs to continue to gut these companies. That's what Curious George seems to want.
Joe writes:
Their piggish behavior is one part of the larger problem. Corporate boards of directors put the shareholder third: after the CEO and themselves. Corporations have used their riches to promote laws and regulations that would put shareholders in control of the board. Sadly, we have boards who serve at the pleasure of the CEO.
Robert from Tampa, Florida writes:
This story is a synopsis of the Bush economy: The rich get richer while the middle class get poorer.
Maybe Jack will read yours tomorrow.
@jackcafferty on Twitter
If CEO’s receive rewards for greed and bad citizenship, we’ll get more of both in the future. A change in Washington won’t solve all of our problems. We need a resurgence in responsible behavior throughout the country. What happened to, “Ask not what your country can do for you. Ask what you can do for your country.”
Since most of this "surplus" is from corporate price gouging and Bush-Cheney War profits, it should go back to the US Treasury to pay off the gross deficit the rest of us are going to be stuck with for generations.
It's wrong for Wall Street to reward its employees with big bonuses ANY year. They make more than enough money to keep them jolly the whole year through.
The Bush administration has made it very easy for these corporations to make bundles of money, with tax cuts for the wealthy, and turning a deaf ear to outsourcing and illegal immigration. All for the good of the economy they say, but they have handed the keys of the kingdom to the big conglomerates, who will in turn reward their CEO's with vulgar bonus' on the backs of the american middle class. What goes up will surely come down. Hope it happens in my lifetime, I will surely enjoy it.
greed is killing this country. when our once great country crumbles to this greed all the greenbacks will be used in the bathroom, but for the poor and the middle class we will know how to survive (since we have done it for years) will the rich? they need to be scared real scared because i am a believer in what goes around comes around and its gonna be fun.
I find it morally indefensible that anyone receive such bonuses.
There is no circle in Hell adequately deep for CEO's who gut companies, fire employees, outsource jobs, and claim it to be good for the nation.
We used to prosecute and jail war profiteers. We used to have American companies that actually manufactured items and produced products. When there are no American jobs for American citizens left who will be able to buy "services" and reward CEO's who rip off investors and non-investors with equal disdain?
it's the problem with the corporation in this day and age. the bosses are paid no matter how bad the performance of the company is. if a small business owner is successful, then he or she becomes wealthy. if not, they go broke. BUT if a corporation goes bankrupt, like many airlines and steel companies have, then the stockholders lose their investment and the employees lose their jobs, pensions and benefits while the so called "executives" walk away with millions.
there needs to be a law that makes corporate executives as financially liable for failure as the shareholders, who are the REAL owners, and the workers, many of whom ARE shareholders. right now it's like the line in the Mafia movie "Goodfellas". no matter what happens it's "**** you, pay me"
Your damned right Jack it is wrong morally and financially to award these employees such bonuses .A lot of small investors have hurt by these Barron robbers!Whatever happened to putting profits back into the business so that all the investors might profit? Corporate Greed is what happened!
If they are giving out bonuses for greed then they should receive a bonus because they have done a good job. But if they have to take into what affect their greed had the average American family's, then answer should be no bonus but they have to watch the movie scrooge every day until Christmas before ringing the bell. This action might help them to realize what their greed has caused others. People losing their homes, their jobs, end the ever expanding debt on credit cards because of of poor regulations. – Bill, Quarryville, Pennsylvania
Jack
No one on wall street should get a bonus. No one working for the federal government should get a bonus, No one worfing for the oil companies should get a bonus. With the economy in this country in the shape that its in its a wonder that any company can come up with the profits to offer bonus's
Jack it is wrong morally and financially to award these employees such bonuses! A lot of small investors have been hurt by these corporate robbers!Whatever happened to putting profits back into the business so that all the investors might profit? Corporate Greed is what happened!
Jack, it is wrong morally and financially to award these employees such bonuses! A lot of small investors have been hurt by corporate greed! Whatever happened to putting profits back into the business so that all the investors might profit? Corporate Greed is what happened!
They earn a year end bonus, and my IRA and Annuities lose value. Shouldn't they be paying me that bonus for utilizing my hard earned dollars?
Life isn't fair, Jack. In a perfect world there would be no poverty, no one would go hungry or homeless, people would be hired for and work in the jobs for which they were best suited, good performance would be rewarded and poor performance would be penalized. In reality, corporate executives are outrageously paid, receive monstrous bonuses for mediocre work and multi-million dollar severances after losing billions for the companies they run. It's as futile as complaining about the weather.
Nothing is wrong on Wall Street.
No! Ir's wrong for them to reward their Congressional and Senatorial "contract "employees this year.
Wall St. scum executives have been rewarding themselves and their friends for decades. They put each other on their board of directors,pay themselves huge consulting pay and bonuses for doing nothing and just rubber-stamping everything that the CEO wants,just like the republicans did for bush. The rape of poor people by the sub-prime loan industry,the outrageous interest rates and fees by the banks and credit cards companies and now the borrowing of money from China and Dubai to keep their companies out of bankrupty have insured the collapse and demise of the United States.
Mmmmmmmm..... Since some of those bonus' are tax deferred, I'd like to see them taxed at a higher rate when they have matured.... Say 60%, that would make my day.....
It Stinks
Is it WRONG????? it is not only wrong, it is immoral. They got these big profits based on cutting expenses, you know, like outsourcing to India so they could save on little things like benefits for employees, or employing undocumented workers and pretending they didn't know, or closing a plant in the Midwest and opening another in Mexico, or cutting customer service, or allowable procedures if they are an HMO, or a million other ways. They got those big profits on the backs of the middle class, and thus created the recession. If you don't have a job, or health care, you don't have money to put back into the economy as a buyer. If you are loosing their home, it's not likely they will buy a new sofa.
These CEO's do work, it is "hard work" to answer to a Board that only looks at the bottom line and controls your bonus, and still do the right thing for your country. So they don't. I mean it takes hours of thought to come up with a legal way to avoid taxes or screw your target customer. So lets reward them properly, with a downgrade in pay, and no bonus, until they start acting like responsible citizens. The CEO of Costco only makes $150,000.00 a year, and he says that's plenty. I agree.
I don't think bonuses from a private company are wrong by any means. That's up to the companies. What I think is wrong is that those high-income people pay less taxes than people like my wife and I, and our parents, and our co-workers, and other working-class families in the midwest, northeast, southwest, and everywhere else in the country. Sounds like a pretty messed-up system, doesn't it??
Dividend receiving stockholdfers don't care, it just means they supposedly made money too. Fat bonuses are the best way big business has of thumbing their noses at lower and middle income similar hard-working Americans who don't get bonuses. It doesn't break my heart in the least that the Goldman Schs guy "gave up" his 37 million dollars.
Its all greed. Just a few minutes away from the self-centered greedy no concience people, are people which includes kids that do not have enough for a meal. Some morality and concience they have
Well, well. This gives me hope to see that even the greediest can find that something deep down that still connects them to humanity in some small way. It must be the season. Merry Christmas, Jack, to you and yours, and thanks for having the guts to speak out!
Annie
Atlanta, GA
NO!
Yes, and while we're at it, let's not allow ANY employers to give Christmas bonuses. It's unbelievable that much of this country has been overtaken by such a seething class envy that they are willing to overlook one of the principles this country was founded on: free-market capitalism. Those companies earned that money in a free market, and what they do with it is no one's business but theirs
All I can say to this question is," It is good to be King isn't it"?
Aparently you don't play much poker Jack. In every card game just like in life everyone sitting at the table starts out with the same number of chips and the same odds at winning. Someone is going home a loser and someone a winner. If you were drawing any part of those 30 billion in bonuses this question would not be on this board. I say KUDOS to those that get it and I wish them a Happy New Year.
Why shouldn't large Corporations give big bonuses! We are living in an era of CORPORATE GREED!
The Rich get richer and the Poor get poorer.
yes....give em their bonuses and tax them like they are gifts or lotto gambling winnings and allow them a choice to pay the same percent in fee-tax we pay /$30k incomes now .....till may 22 every year....... 45 percent or more
Dear Jack,
Since the wealthy minority in this country live by the following 'Bill of Rights' I think you can draw your own conclusion. ( PRIDE, ENVY, WRATH, AVARICE, GLUTTONY, LUST, and last but not least SLOTH. )
Not if you were one of those Wall Street employees that got a bonus. No sane and rational American would ever blame another American for any accomplishment. Only those people that are envious and jealous would find fault in it and most of those would be underachievers and the parasites that glom onto those that are productive. Those that pay taxes on those bonuses pay for those that are not productive and receive benefits from those taxes. Without the Rich there would be no poor.
No Jack,
Haliburton and big oil deserve every penny.
Geez.
Of course Wall Street should give bonuses. The problem is every American who worked to increase their employers bottom line this year should get, nay deserves a year end bonus. I got a 50 dollar bonus this year and I should feel privledged because most everyone I know got nothing and at the tail end of a record profit year that is very discouraging.
The sad reality is if you combine all the bonuses it would not cover 1 day paying for Bush's war.
Jon David
Atlanta, Ga
Absolutely, It's Wrong!! Almost unbelieveable really. Any reasonable company gives performance based incentives.
Are you kidding me?
YES!
Absolutely WRONG!
Aren't these the same people partially responsable for oil prices being so high? GREED, GREED, GREED!!!!
I never, ever again want to hear that these guys are receiving a reasonable incentive for the awesome job they do. Their corporate stocks are down 45%, and they get millions in bonuses? Hogwash! Where's the connection to reality?
Hey Jack,
If your show got bad ratings and everyone stopped watching but you stayed on and still got paid, would that be wrong?
Of course they should return their bonuses. A bonus should be given only when a company is done well the entire fiscal year, not to say companies can't have bad days, but completely dropping the ball at the end of the year?
Yury
Jack, it's crazy yet if the shareholders are willing to tolerate these bonuses – so be it!
However, in view of the recent sub prime debacle, Let none of them dare ask for a bail out from the government and the people. Let these institutions stand on their own two feet.
It's criminal for the CEO's to get big bonuses when my portfolio is down because of their carelessness. It's like stealing from the little guy.
Of course its wrong, they should be paying off the bad loans and mortages which were made under their management. It is crazy that the government will bail out the banks and then they will give bonuses out.
Absolutely not. The blame for a market downturn cannot be placed on the shoulders of individual employees at an investment group any more than those employees can be rewarded for a market upturn. Investors have placed their bets on the future success of the company, which is directly tied to the way valuable employees at that company are treated. Rather that looking at how much money their stocks lost this year, perhaps investors should start looking at how much more they could have lost without the very people who's bonuses they are questioning.
I do not think it is wrong of Wall Street to reward its employees with bonuses. However, these bonuses don't need to be big! Not to mention, these are banks giving out the bonuses. Why not use these bonuses, cut them, and spread them amongst the less fortunate in the companies. That's obviously insanity though...in this market, the rich get richer, and poorer... stay poor. Bonuses should require a mediator, such as a policy or corruption will only grow.
The vast majority of public companies are actually run for the benefit of the top executives and not the shareholder-owners of the company. Shareholders supply OPM (Other People's Money) to allow these exectives to profit. This is as true today for Wall Street banks as it was for old-time conglomerators like Harry Figge. It takes a major revolt by institutional investors to cause the executives of a public company to change course, and most of the time those institutions are run by people who are of the same mind-set as the greedy executives.
Need you ask– its more than wrong it's plain crazy that the Government will bail out the banks and then allow any bonus. How about paying the Government back all the bail out money and then pay off the bad loans.
Renee
Of course they deserve the bonuses. It's not like I could run those companies into the ground.
The folks on Wall Street make money several ways. One way is getting commissions on trades – first they create volatility by selling and buying in their own accounts – then they get commissions for getting us to buy and sell because the market is so volatile. It is another huge transfer of money from the folks trying to retire to the folks who are already wealthy and should be retires.
Is it wrong? Well, considering that our economy is 72% consumer spending, which means having to continually rape the earth of its resources, and is an economic system that most of the world is trying to emulate, which will result in environmental ruination for most life on this planet (including human) - it's really not that big of a deal, is it?
People of the U.S. care more about Britney's babies than the current mass extinction of species, the likes of which hasn't occurred in mankind's history. We are pretty much screwed no matter what a few bonuses are.
It's criminal for the CEO's to get big bonuses when my portfolio is down because of their carelessness. It's like stealing from the little guy.
Helen PA
Sure they should get their bonuses, they did exactly what they were supposed to do... Pick the pockets of the poorer 90% of Americans and put it in the pockets of the wealtiest 10%.
You're being too hard on these guys, Jack. They earned this money – they've done a good job this year, it's just a question of who exactly they're working for. Besides, they need this money to hire bodyguards to protect themselves from outraged investors.
I think its great! Maybe huge bonuses like this will prompt people to look up which candidate has the guts to take on Wall Street, the Fed and the military industrial complex, the entities that benefit most from this monetary system that constantly devalues our dollar. Until we understand the inflation tax we will never understand why wall street is doing so well on the eve of a major recession. It is the exact reason the rich are getting richer faster, and the poor and middle class are being left behind with a dollar that soon wont be able to buy a peso.
I think its great! Maybe huge bonuses like this will prompt people to look up which candidate has the guts to take on Wall Street, the Fed and the military industrial complex, the entities that benefit most from this monetary system that constantly devalues our dollar. Until we understand the inflation tax we will never understand why wall street is doing so well on the eve of a major recession. It is the exact reason the rich are getting richer faster, and the poor and middle class are being left behind with a dollar that soon wont be able to buy a peso.
Brian Davis
Delray Beach FL
The salaries received by some Wall Street folks are obscene. But, so are some of the salaries of professional athletes and so-called entertainment personalities. Jack, you noted that 57% of us believe that we are currently in a recession. I would point out that some 50% believe in angels. Personally, I don't believe in either one. How about you?
John
Columbia, MD
...Foregoing Bonuses? How "BIG" of them! Litirally!
It's thier way of saying;
"Wer'e so rich from rapeing the public already, and we'll only need to double prices again next year!" Isn't it nice to be on top!
Their piggish behavior is one part of the larger problem. Corporate boards of directors put the shareholder third: after the CEO and themselves. Corporations have used their riches to promote laws and regulations that would put shareholders in control of the board. Sadly, we have boards who serve at the pleasure of the CEO.
How many kids can we have covered with insurance. Put food on how many tables. rebuild how many homes.They should be ashamed to except the money but, then they got there taking and taking. Hope they sleep well at night...I could and my children,grandchildren,great grandchildren could live on a 10th of the money...
We need a President who will take on Big Business, someone who has the backbone to make it illegal to have such obscene bonuses or salaries for that matter. I think it should be ILLEGAL for ANYONE to earn more than $1 million dollars per year, including all bonuses, stocks, etc. All of this country’s ills come down to one thing – GREED. If greed were forced out of the equation, there would be no need for false wars, harmful drugs, nearly all goods made overseas. Gee, maybe even crime would drastically reduce, as the little guy might feel like he would have a chance if these greedy, unpatriotic so and so's were stopped. If the money siphoned off by these people were routed back into business being done in the US only, or shared among their US workforce, there would be less unemployment in this country and perhaps we would see investment in American manufactured goods and services again at long, long last. Anyone who invests in any company that awards such ridiculously large salaries or bonuses is equally guilty. It is unpatriotic to undermine your fellow US citizens by milking them dry. These CEO’s are thieves who are getting away with the loot. Make it illegal. Thanks for listening.
John, Atlanta
Foregoing bonuses...how BIG of them, literaly!
That's thier way of saying...
"Wer'e all so rich already from rapeing the public & we feel sorry for them haveing thier entire life's under our thumbs"....sounds like it's not too long before the torch's & pitchforks start getting passed out!
How else can big money guys on Wall Street keep up with the outrageous windfalls for certain Baseball and other obscenely paid souls on Earth? They are in the "can you top this?" game getting payoffs for nothing. If nothing else they can always brag that they are keeping up with the super rich Joneses ... you know ... that small percentage of the rich with their un-needed tax cuts. They can all be lumped into the group known as "Scuds raining down on the American Economy", a rain that won't stop till our Middle Class totally disappears.
I get a bonus when I do well and my company does well. If either of us don't then it's slim pickin's. If they don't refuse their large bonuses, they should be put out on the street, along with the buddy-buddy corporate boards that allow this sort of thing.
Jack, maybe we need to link this page to "EVERY SINGLE POLITICIAN'S WEBSITE so they can see how we all really feel!
Goldman Sachs CEO Lloyd Blankfein deserves his massive bonus for making risky, but shrewd decisions that have dramatically increased profits for their firm. Under Blankfein's watch, a tiny group of Goldman traders were allowed to bet against the subprime market, which resulted in nearly 4 billion dollars of profit. This more than covers the 1.5 to 2 billion dollar loss at Goldman suffered from mortgage-related losses. For the other firms that have suffered greater loss, keep in mind the employees at investment banks work insane hours – often 7:30 am – midnight. It makes sense to give them a big bonus.
Proof Positive of my theory.....2% haves....98% have nots!
Jack,
In a time that the Lower up thru the Middle economic "class" has trouble paying their basic of bills with out two jobs, the do nothing complicit White House and Congress getting rich on our misery, we need to rise up, "Shake the tree of Liberty" (Tomas Jefferson), imprison those who have broken the law, even if it is The President, VP, or Speaker. Those who are afraid of a Constitutional Crisis need to "suck it up" stand up for our Civil Rights, restore our Constitution, NOT allow the Bankers, CEO's, Wall Street to take and take our money, squandering it to "knee-jerk schemes" that are only to make the Money Managers richer and the average worker who is relying on their 401K to help them out with their retirement. Yes, I am talking about a true REVOLUTION!!! I know this is not going to make it on the TV because the Media does not want you to know the truth. Jack, Lou Dobbs, few others are trying to get out the truth but I fear it falls on mostly deaf ears or people who are to afraid to try and change things.
Could someone tell me WHY and for what reason they are getting that amout of money. When you have so many people doing $ 20 000 a year and are strugling to pay they bill.
My answer to these bonuses is NO
Thanks
Maybe 1 of these new thinking candidates will finnaly ask the Golden question;
"WHERE DOES ALL THIS LEAD US TOO? WHEN IS A $50 LOAF OF BREAD TOO MUCH FOR THE PEOPLE TO HANDEL?"
CEO's get outrageous amounts of pay while the people who actually do the work starve. Wall Street is no different.. Why is this question even being posted?? Its the way of the New Corporate World we live in.
Jack, I just want to tell you and all the CNN crew HAPPY HOLIDAYS and I wish that one day the poor look forward to the end of the year so we could get a BIG bouns, and a rise.
How is this skimming operation conducted by these brokerage houses legal? Some day we'll look back in disbeleif at this banditry.
When the HUGE majority of people in this country are LOSING their wealth, and these guys are raking in even MORE bonuses....get rich off the backs of many, while the "many" work and toil for less and less! The word "traitor" comes to mind. I guess that trickle down thing isn't working so well. The problem we have right now is that our true enemy is working from inside, which is a lot more difficult to deal with. Oh, and as to the comment up above, you know who else is working insane hours? People who work three jobs...and they don't get a six or seven or eight figure bonus – but they do get a pat on the back from Bush, being labeled as 'uniquely American'. I guess that makes up for it, right?
If you are going to raise the issue of bonuses or any other topic, for that matter, you should research the facts a little bit more. Many of these complaints reflect a lack of knowledge on the subject. Goldman Sachs made staggering profits, so they received bigger bonuses. It doesn't make sense to lump them in with other firms. They pulled off something incredible in a market like this. You failed to point out that firms like Morgan Stanley and Bears Stearns Cos. with significant mortgage losses are going to forego year-end payouts.
Also, before people compain about these bonuses, ask yourself if you are working 7:30am – midnight or are you complaining as you sit on your couch flipping the channels of your television? Did you stick your neck out and take a bold risk in the world with a genius strategy you developed and work yourself to the bone, deprived of sleep and any other kind of social life? That kind of determination and hard work should be rewarded because this is the American way. You can MAKE it happen. CEO Lloyd Blankfein grew up very poor in Brooklyn. He has earned his success. It should inspire us to maximze our talents and strengths. Quit whining.
It seems to me that these types of bonuses are alot about greed. The big bankers keep giving performance bonuses based upon some criteria that helps everyone reach their objectives even though a mass number of people must settle for little or no return. We are in my opinion aware their are tragedies taking place out there and may even know a few people who have lost their homes, however we have become a lottery society. We show the winners including sports superstars, movie stars and business tycoons, even religious evangilists all saying you can have it all too. This is enough to always avoid the realities of overspending and overborrowing. We keep playing the lottery even though their is no chance of winning. Instead of being concerned about the marauders of greed.
The sad reality is until the bottom really drops out things probably aren;t going to change. Wall Street advances and this is a signal all is well.
If the commander in chief starts a war and it becomes appartent that the real purpose of the war is to assure its continuation for his, and his war profiteer buddies', personal wealth, isn't that also known as "Insider Trading?"
I should clarify that when I referred to Morgan Stanley and Bears Stearns Cos. foregoing year-end payouts, I meant for the CEOs.
When I lived outside the country and used a foreign address, I, because I was a U.S. citizen, had to pay income tax just as if I had continued to live here. The few times in my life when I was paid a bonus, the amount was always less than one percent of my regular earnings. Looking at what is happening with corporations “living” tax-free overseas and corporate executives being paid great sums for losing their companies’ money, I have to conclude that corporations and their leaders are seen as privileged persons, superior to any regular citizen. How does this system differ from aristocracy in any way other than semantic? And why should I be loyal to people and organizations that either ignore or circumvent the Constitution that this country is supposed to be governed by?
Note: Shareholders do not own companies ; companies own shareholders. Governments do not serve citizens; citizens serve governments. Nothing has changed in a hundred thousand years but the names of things. As someone once said, "Only the letterheads . . ."
No, it's not "wrong" for a profit making company to give bonuses. That's up to the company, isn't it?
The problem is that banks have a "license to steal" through fractional reserve laws, and are insulated against bad business practices by the FDIC and Federal Reserve.
If they were just another business without all the legal protections and liable entirely to their customers and investors, then they could be sewing wings on pigs for all that I care.
Jack, this is nothing new. Ronald Regan trickle down has created the monsters, their greed, their lobbyist, right down to disposing of the flag if necessary to keep their little profit line going up. Amazingly they have decided lately they might need the other 70 % of America to buy what corporations produce. The inevitable end conclusion of trickle down that's only trickeling out of America. Should they get their bonus, sure but remove their taxbreaks and give them back to real Americans with small business. Let's level the playing field again, if the big boys want to own the world they need to do that on their own, with their own money. NO MORE LOOPHOLES AND TAXBREAKS TO CREATE EVEN BIGGER MONSTER, GREED CORPORATIONS TO CONSUME US.
What I am not understanding is why if you make already over $200K would you need a bonus? In most companies, anyone who is making more than $200K is usually in the supervision status and is not truely part of the gearing necessary to move the company forward. Sure, maybe they are making the big decisions, but the decisions are carried forth buy those making the $20K a year salaries on up. Split that big bonus amoung those employees who truely do deserve it. And while we are at it, maybe it should be those employees lower income employees who should be in the board room making the determination of who gets bonuses or not when CEO's are hired. They generally know what is better for the company and can tell who is not going to give them the royal screw in the end.
I am a veteran and Bush and Cheney took us to Iraq to privatize the oil. Ray Hunt of Hunt Oil just got the first Kurdistan oil contract but the Iraqi Parliament said it's illegal. Because the Iraqis refused to sign the New Oil Law which would have given American Big Oil companies 70 percent of all Iraqi oil revenue and control of contracts for development and production, Bush and Cheney circumvented the Iraqi Constitution, the wil of all the purple-fingered residents, Oil Minister Shahrastani or something like that and the Iraqi Federation of Oil Unions. I am also old and a reporter. Somebody needs to say this. Ray Hunt is the son of HL Hunt who lost some money during silver trading but left a ton of money to his son who has done well. Ray raised $100,000 for Bush for the 2000 election, is an economics major from SMU where he sits on the Board which will be funded to build the Bush Libraries. He attended the secret Energy Task Force Hearings and this is very interesting. He was placed on the Foreign Intelligence Advisory Board in October of 2001, weeks after 9-11 where he became aware of secret intel, became a foreign advisor to Bush and a mere five years later is CEO of the first American oil company to sign an illegal contract worth billions to privatize the Kurd's nationalized oil. Isn't that convenient. As a reporter, I don't like convenient. Real reporters should be telling you this but we'll see if it sees the light of day on this forum. Ray Hunt was the former chair of the National Petroleum Council and now sits on the board of the American Petroleum Institute. Hunt sits on the Board of Halliburton since 1998, Pepsico, Bessemer Securities, Security Capital Group and Electronic Data Systems. Ray Hunt rings in at $2.5 billion and his illegal oil contracts will be worth billions for exploration, development and production unless the Turks kill them all and take their share. The Sunni walked away from the Iraqi Parliament because of this oil deal. So let's review. Follow the money because it and everything in America is about money, especially our corporate thocracy. Second and to me this is the clincher. Bush and his oil buds like Buckshot Cheney are gamling their oil patch money on Iraq failing. Unless the Parliament fails and the the nations is partitioned, the oil deal will remain illegal because the Iraqis will never accept revenue sharing of their oil wealth. Bush and Hunt want Iraq to splinter and they always did, from way before 9-11 and the secret publicly funded with public officials Energy Task Force Hearings. The Oil Boys dotted the I's and crossed the T's all the way down to hiding their tax breaks in a war appropriations bill and the Homeland Security Act to ensure this oil heist would be tax free, planned, orchestrated, signed, sealed and delivered. This is my first post and this is the best I got as a real print journalist who loves his country and served four years during Nam, not to protect us but for corporate enrichment and now, well you know. Thanks for listening and have a glorious Christmas and holiday and stop killing our children for oil please. Thank you, Bob
There swhould be a law that executives cannot make more than 75 times he income of he lowest paid employee (full time) including bonuses and stock options. Contact your rep if you agree.
In a world dominated by materialism and greed it is only natural for those who create those conditions to take the lion's share of the wealth. How could you expect it to be otherwise. It is up to those of us who oppose such activity as this to change the social economic structure that permits it to happen. It we do not it will only continue.
Why not, there's nothing in place to stop them and investors keep investing. Where there is money, there is greed, and where there's greed there is theft or how about just plain robbery.
Apparently they were entitled to it so they got it. What's the big deal. You think they get all that money? They don't, The government gets about 33 percent of it in various taxes and that goes to all the folks sitting on their ass at home sponging off the rest of us. If you won the lottery and you were awarded 200 million for a 1 dollar ticket would you ask this same question? How about if you wrote a book and sold millions of copies and made money off of it would that be wrong too? Making money in America is what makes America what it is. Those that don't see that are just underachievers or fools.
Jack, "money always trumps peace", GW Bush so, in my opinion money trumps everything! This is not the age of caring Jack, this is the age of taking. Why bother!
It's a big joke. Their companies are doing badly and they make millions.
Jack,
In looking over the CNN site this Xmas day, I noticed a blip on "What Bush Gave To Laura". I say as to the majority of the country, "Who Cares".
What has he given us, besides death and debt.
Merry Christmas to all
He's one hell of a blight
I hesitate to say anything negative, but, I think it should be obvious that for some people are reaping thebenefut of what seemed to be a thriving country, which is really is qite the opposite,, & "making hay while the sun shines". In comparison, the "little man" gets a small amount of "bonus money" at the end of the year, as a reward for hard work, but the "top" execetives get :over top bonuses for little work & half the time for swindling the people & the company they work((?) for. How many finish in gaol?
You need a President who cares for the "little people" & not just the rich, like himself, who are covered by free Health Insurance & can check, at a minute's notice, into a hospital & get the "works", while millions of people cannot afford insurance & if they can are putting on the waiting list & have limited tests because they are not covered & too expensive..
All that money spent on advertisements, ccook outs, traveling around the country, etc, could feed & house millions of your starving people. America is noo longer the"land of opportunity.
With a country so riven with compassion such as ours[the greatest country on the planet mind you] because of our superior morality and our untiring dedication to the caring for the least of us at any cost,I really dont see a problem with corporate titans getting fatter and fatter .this is just another case of the liberal media attempting so smear our great unbridled corporate outsourcer's. their contributions to our society cannot be more responsible for where we are as a nation today.thank you corporate America!
after 7 yrs of bush. i have lost my mind and don't care what these bums on wall street get . they are crooks. what do you expect?
YOUR ONE IN A MILLION JACK. KEEP UP THE GOOD WORK. WE NEED MORE REAL MEN LIKE YOU. THIS COUNTRY IS GOING DOWN HILL SO FAST IT ISN'T FUNNY. THANKS TO MR. PRESIDENT AND HIS VICE.
No
Well, no one forces you to get into the market. If you don't like what is going on, get out. Yes, some of these "bonuses" are scary big. Many entitys, like to tell us, "to get the best, you have to pay the best" . If you agree with this, keep investing in these entitiys.
Attractive financial packages are offered to attract successful high level executive management. Such often include a specific bonus for meeting a specific goal. Sometimes the goal is a percentage of profits or profit shareing. These ageements are authorized by the corporate directors elected by stockholders. When goals are met the company must pay based on the conditions in the agreement. If the bonus is seen as excessive, it is news worthy.
Such stories always elicit a negative but ignorant reaction to an employment contract that successfully created the desired results for both the employee and for the companies investors.
We need to return tio the ration btw the top brass and the average worker present at the time. That was 40 to one. If the are a service industry and the average wage is 20k/year then the wages over 800k paid to the CEO should be "donated" to the treasury to help pay off the Bush debt. These days that ratio is a couple hundred to one. And most of them donate to repugs.
CEOs negotiate for such bonuses when they are hired. The fault in allowing such contracts falls with the company and its board of directors. I wonder what effect it would have on investment practices if a breed of company became common that refused to pay bonuses whenever a company was losing money and stock exchanges were required to indicate, in ticker listings, which companies enforced such a policy?
Dear Mr. Cafferty;
I received your recent book "It's Getting Ugly out There" for Christmas. I am about half way through. You, my friend, are delightful. Since our elected officials are not doing anything to stabilize the mess that "W" is making, we really must rely on you, Mr. Dobbs and other great journalists to help us understand what is happening. I am starting to become immune to the stupidity and arrogance (a really bad combination) of our illustrious president, but I will never forgive those who voted him into office. Keep up the good work, and next time you write a book, let us know how you really feel??!!
Thanks again,
Denise
Sturbridge, MA
Suck it up Jack. The big bonuses have the owners ok. That would be all the share holders. I agree the bonuses should be earned and not gifted out to crappy CEOs but its the shareholders who allow it. Just like democracy goes bad if no one is watching. Fun same share holders that should be watching what their board of directors are doing, are the same people who should be watching their state representatives.
Jack, we need another revolution to make things right again,,,,,,,,,,,,and by the way
has anybody read" The Rise And Fall Of The Roman Empire"?
Its unethical to give executives large bonuses any year a company fires workers it "increase productivity" as CEOs so often claim. If Americans don't have jobs they can't afford to buy the products these companies sell. Henry Ford certainly understood this reality. He paid his auto workers $5 a day because he wanted HIS workers to be able to buy the cars the were producing. Something our Multinationals have lost sight of today!
DEAR JACK
DON'T KNOW IF MY MESSAGE GOT THROUGH OR NOT SO WILL REPEAT
YOU SAY THAT IT IS FETTING ROTTEN OUT THERE.IT ALWAYS HAS BEEN.
THANKS TO YOU,LOU DOBBS AND WOLF ON THE CNN,THE TRUTH IS FINALLY GETTING OUT.
CNN AND THEIR BACKUP STAFF INVESTIGATORS ARE THE BEST THING THAT EVER HAPPENED ON TV.
KEEP UP THE GOOD WORK.
HAPPY NEW YEAR
BILL CRAMER
HERMISTON,OREGON
Dear Jack:
It appears to me that something has gone radically wrong with the balance of things.
CEO's, CFO's, stars and athletes are being rewarded in amounts that seem obscene to me.
It would be one thing if they were providing comparable profits for their stockholders, employees or the world in general, but it is another thing altogether when their rewards TAKE from the general well-being of their organizations or humanity.
Personally, I suggest that anyone who does business with a firm that allows such outrageous bonuses find a better place to put their money... somewhere where THEIR well-being is valued by the Board of Directors.
Jack,
What most people don't understand about big bonuses is that they contribute to them. Find out what corporation it is and don't do business with them. We as a people fuel the economy on a daily basis. If a major athelete is pulling down millions from Nike don't buy the product, same with other companies. Spending 50 to 75 dollars for a ticket to a sporting event, don't. I don't buy products from Tyson Foods because they hire illegals. I'm just one person but together we CAN make a difference.
Read your book, we know you got it right on all counts. Being a WWII Vet, for almost 4 years, we can't see how "W" could do what he wants without much of an outcry. We have voted in every kind of election since 1948. We can't register as 'Independents' (in Arizona) becuse we won't be able to vote in the primary. We'll keep viewing and listening, we don't have any faith in the Congress.
Thanks for being on a concerned persons side.
Frank & Lorraine Smith, Scottsdale AZ.
I am a senior citizen who ws born during the Depression. My father would work all day just to earn a quarter (if he could find a job), and we had to live with my Aunt and Uncle. Now, athletes make millions, for what I don't know, the CEO's make millions, also for what I don't know. And then there are the rest of us who struggle year after year. My husband was a teacher and I was a school secretary so our retirement is not the greatest. If someone would say STOP we have had enough, maybe we would be back to being a country of hard working, honest, citizens.
How can any company that has posted a loss find justification in awarding bonuses to employees yet nothing to investors? The bonus to employees would be to put the investors first so the employees keep their jobs.
Rich from Texas states that "everyone starts out with the same chips and have the same chance...."??
Don't know what planet he spends time on.... This wealthy country has children that sleep outdoors in cardbaord boxes.... and children with nannies and trust funds... Same starting line ... Oh my..
Private schools and overcrowded failures for schools..
And Foster children moved out of the system at 18 ... with nothing.... Same chips??
Children without health care and children with nose and boob jobs...
And soldiers returning from Iraq without limbs .. but no GI Bill for college ... not even local health care in some cases ... Same starting line ... Same chips..
Rich . you need glasses and a hearing aid ... or a shrink...
Bah Humbug .....
As a disabled American who has to live with a $ 20.00 cost of living increase this year, i find it hard to understand why there is so much ignorance within the corperate community. CEOs etc. are paid huge bonuses while the actual men and women whom make them money are left dealing with the cost of living and the hardship of fighting insurance companies for fair healthcare or even disaster relief. any CEO and corperate heads that make more than the President of the US are just plain greedy.
Jack: The "Pond Scum" in the wallstreet boardrooms are no better than the "Whale Turds", that are now in the "Peoples House", letting them get away with sucking the middle class dry. We, the middle class, will be paying for these greedy morons, and our kids, for years to come.
Only when the people place as much value on what is going on inside the beltway, as they do a foot ball game will things change.
The people at the top don't care about anyone below them. Nor the enviroment. As long as their world isn't rocked, they're not concerned. They only do what is necessary to get MORE! Greed is destroying this country and those below are allowing it.
Absolutely NO slimebag who made money off taking advantage of honest, working people's trust and put them in the poorhouse deserves to be allowed to live, let alone get a bonus.
Jack,
when I was in high school in the 60s I wrote a paper about our worst enemy, Nikita Kruschev, banging on a podium with his shoe and screaming that GREED would destroy America.....
I'm afaid he was right ouch!
The Huckster of course, will win the Nomination and if he doesn’t and the diehard Republicans push through McCain, the beating will be even worst on November 7th, 2008, McCain can only play to the fear.
Obama's win means; It means America is past waiting on Change and over with promises and being told, it’s not the way it’s done and we can’t break a pocket filibuster and we can’t stop corporations from buy Congress and writing legislation, it means Republicans diehards and Neo-cons will receive the beating of their lives this November 7th, 2008, America is turning the page.
Jack...
Nice blog.
I hope to vote for Edwards. But I DO like Obama. My question is: In an Obama presidency, will the Sharptons and Jesse Jacksons out there rise to prominence on the political scene to a point even higher than they are now? Or even worse, a cabinet level position?
Because if that's the case, forget it. I wouldn't for him. I'd rather not vote at all than vote for an America where those two clowns have real power.
Nick
Hey Jack, what about the Wyoming Cacus? Is it important? The media is not talking about it.
I am so glad hillary clinton was beaten last night in the iowa caucaus. Get her out off there all she is interested in is power and i am tired off looking at that loser husband off hers. I think there is much better cadidates out there than her.
In response to Mr Obama's victory speech, it was indeed brilliant. In common sense terms what he was really saying was "those who take must learn to give – this is what you are giving how do you look "In his case, what he was giving was worth taking . He spoke from the heart with comapssion fitting a future president
Man what are you taking about (Obama) "his kind" his dad is black and his mom white?
Jack...what it means is that when the voters are "hands on" in an election–the result is vastly different than when corporations are in charge of our electronic voting equipment..for instance the 2004 election.....and it it obvious the voters want CHANGE! To get change, however, we will have to fight for it rather than just sitting back and hoping for the best–because that bus is never going to get here!
Hillary didn't win Iowa for the same reason Rudy didn't, but if anyone thinks they are not the candidates to beat in their repective parties...they aren't paying attention. As an aside, what do you think about an I.Q. test and a current events pop-quiz as a pre-requisite to voting in a national election. It might bo farther to prevent fraud in our presidential elections than Indiana's I.D. card. This CAN'T be what Jefferson had in mind.....
Just a thought.
Dear Jack, I'll tell you who won in Iowa last night. You, with your constant Hillary bashing. And the Republicans. If ever we needed experience in the White House, it is NOW. The Middle East is in crisis, and our economy here at home is in crisis. How on earth do you get "change" WITHOUT "experience/" ? We can not afford a neophyte at 1600 Pennysylvania Ave with the kind of emergencies this country faces. Jimmy Carter was a wonderful man, but his was a failed presidency because of his inexperience. Karl Rove is rejoicing.. Elaine
I work in the newspaper industry,if my circulation fell 45%, the only thing I would receive would be a pink slip. What ever happened to performance related pay?
Make no mistake. Obama's capturing Iowa last night was not an anomally.
WHY !!!!
I'm just one democratic voter from a small and far away state Hawaii. Since W,Clinton got elected 15 years ago, I have been attentive to every presdendial. election. I think, no indivdual candidate except Pres. Kennedy, Reagon and Clinton took the nation by a storm. In year of 2008, we have Obama.
The inner soul of Barack believes that hope was his destiny to change the identity of this nation at this moment in time. All that he needed was to confince the voters. Look, everything Obama stands for and preaches did instill those voters in Iowa. He sacrficed his future by living and laboring on the streets in Chicago to benefit the poor; weak and helpless.
Last nights victory by Obama crushed and deflated all Sen. Clinton stood and defended.. In the coming days, all what's left for Hillary to defend her position by preaching to the choir she is the only candidate to beat any Republican. And her experience is crutial from day one in office. WHAT A FARCE!!! I heard all of this before.
No way will Sen Edwards will be able to garner enough voters (democrats; intependents and republicans or alike).
"I GUARANTEE A WIN BY OBAMA IN NH AND ULTIMATELY BECOME THE NEXT PRESIDENT OF THESE USA." Barack will catapult his presidency and become our next president of USA. This morning, he did say the same, except I us the "G" word.
Dear Jack,
Name Recognition:
Why is it that all the candidates, Republicans and Democrats advertise themselves using their last name, EXCEPT Mrs. Clinton, she uses only her first name on her banners; "Hillary", is she ashamed of the name Clinton. She stuck with "Bill" all those years in Arkansas and Washington when he was playing around but now that she is a 2nd term senator she must feel he could drag her down.
Dave Tapfer
Ft Lauderdale
I have been watching the the democratic candidates share there thoughts and ideas and I can not understand the position of Hilary CLinton and John Edwards. Hilary speaks of experience and I would like her to articulate what experience she is speaking about. If she considers being first lady as experience, she definitely is confused. It would b good for her to articulate what polictical and executive experience she has and what have been the outcome of her major projects. With regards to John Edwards, he needs to explain how he will change or stop the influencing of the lobbiest in washington. He can them expain how he will stop world hunger. Furthermore I would like to know who are the major finance contributors to his campaign and to his wealth. Barrack may not be the perfect candidate but it appears as though he is the most transparent.
I think Wall Street should be shut down altogether. It's the invsetor class that stomps on the people of this country, and the rest of the world in the first place. Some big-shot on Wall Street makes a shrewd decision, and it bankrolls murder and genocide in places like the Congo, so that the multinationals can get their hands on the cobalt or whatever, to sell to Nokia and others to make cell-phones, and this is just the tip of the iceburg. Lest we forget, CEO's and executives of huge health insurance companies who recieve even bigger bonuses than the ones you mentioned of the Wall Street big shots. They get a huge multi-million dollar bonus, yet some sweet 17 year old Armenian American girl in Glendale, CA has to die because this same big shot makes policies which deny her the care that her father paid for. I'm not even beginning to get warmed up, but you see where I'm going here, right?
Last night was the greatest night of my life. I witnessed for the first time the American Dream that Dr. Martin Luther King, Jr. spoke of on the steps of the Lincoln Memorial in August of 1963. After hearing Barack Obama’s speech, I slipped away into the spare room of my home (a home I might lose due to an adjustable loan resetting at the end of this year) and wept. For once, the American Dream did not amount to anything material, a house, a car, or a bottomless savings account. I wept realizing that America for once saw a man; not a black man. Iowa chose Hope and endless possibility over pessimism, fear, and division. If I die today, I can say without a doubt, I have seen greatness in the people of this great nation. My confidence has been restored, and whether or not Obama becomes the presidential nominee for the democrats, I now believe in the American Dream. America, hope again and again. When you stop hoping you die.
I think that all the hupla about Osama being black will only drive the races apart even further. Osamas biggest opponent is Jessie Jackson.
I for one am looking for someone to say Americans , not black or white Americans. Treat everybody the same. Thanks
JD
Hi Jack,
From an outsiders view (I'm Canadian), I think your Country is broken. I watch your station all the time and I don't understand why your country is so stupid. I'm not trying to be disrespectful, but you keep trying to"Save the World" and push your values on everyone else. While doing so, you forget about your own citizens and your Countries internal problems. Why don't you take care of things at home first and foremost, before you take on the world.? We are in the (comfortable) position of living under your wing and although it is appreciated, it is scarry. Thank you. Gary
Jack, Mr PRESIDENT wants to know of the 2008 candidates "on what principles will they stand during good & BAD times ?" PLEASE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
HELP US TELL HIMMMMMMMMMMMM " WE THE PEOPLE "!!!!!!!!!!!!!!!! STAND ON THE PRINCIPLES OF CHANGE !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!WE THE PEOPLE WANT CHANGE
indianaBLU , WESTCHESTER
People you can scream and cry about congress, big business, oil prices, all day long. BUTwhat did you do to stop them ,did you buy a honda,a toyota, maybe a BMW.Did you fly away for your vacation.Did you buy thoses 300 dollar jeans.Did you jump into the stock market.What you did in 2007 was exactly what you were told to do,Did you use cash when you made all those purchases the banks told you to make. No you used there credit card and racked up one hell of a spending party . Do all your kids need cell phones +yours + hers. did you really have to rent all those movies in 2007 about 100 200 300 am I a little low cost wise for all the little stupid things big business got you to do 2000-1-2-3-4-5-6-7 are you catching on this is just the little stuff.A am sure you can tell each other about the big stuff.
It's nice to see that the CEO of Countrywide is not going to sell pencils on the street, or have to eat at the future 'soup kitchens'. His 104 million $$$ 'Golden Parachute' will have to last until he looks at the classified ads and constructs his new resume.
I wonder what the stock holders are saying after they took in the sad news. It seems as if 'stock holder' means 'Holding the Bag'.
When big corporations do so well as to be able to pay such obscene bonuses, it is because the American people made sure that these big corporations have done so well. We the people, need to be conscious as to where we plunk our pennies. Give your pennies to the ma and pa shops, shop second hand, re-use, re-think. We are the ones who have supported the corporate greed. Only we can stop it.