Chi Guy asked in Politics & GovernmentPolitics · 1 decade ago

In lieu of the Wall Street bailout, does anyone still believe that CEOs are victims of over taxation?

Update:

Obama WHO? Your Next (below) Dinner is in Jan. The invitation is only open to ladies, not skanks.

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  • 1 decade ago
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    I remember in the 80's CEO's were also paid huge sums of money. The ones who got the most money were with the company 2-3 years before the company went under. I believe they were hired to take the fall and were compensated to make up for the damage to their career. I think that is true today as well. These companies had to see this coming for a while now. I believe it was AIG's CEO that was paid 1400 times more than the average employee there.

    It would seem that the amount of money paid to the fall guy could have bolstered their position and been invested to save the company. I don't pretend to understand big business but it seems to me there are elements of corruption involved in those scenarios such as some kind of insider trading, but other than the CEO, I don't understand who else benefits. I only see it as a trend in failed corporations. I don't think taxes were the culprit.

  • 1 decade ago

    I haven’t seen anyone say that CEOs are “victims” of over taxation. But there is quite a difference between Jack Welch, former Chairman and CEO of GE, and Stan O’Neal, his now former counterpart at Merrill Lynch. Under Welch’s guidance, GE became one of the best performing CEOs of all time. Stan O’Neal ran Merrill Lynch into the ground.

    Most of our large corporations with highly compensated CEOs have nothing to do with the “Wall Street” that is at issue today.

    CEOs are a commodity. They are “bought” and “sold” in the marketplace. If a company wants a top-flight CEO, they literally have to bid for him or her. If they aren’t allowed to bid, they won’t get the best CEOs. Many of the top guys will go to foreign companies that operate here in the United States but over which we have no jurisdiction when it comes to CEO compensation.

    I wouldn’t mind seeing the SEC come out with a ruling that requires publicly traded companies to obtain shareholder approval of any compensation package that exceeds $XXX. I never owned shares of Merrill Lynch, but if I had been a shareholder when the Board of Directors awarded Stan O’Neal a severance package of $150 million, I would have been infuriated. Fortunately, shareholders have become more involved in corporate governance in recent years, so this problem may resolve itself.

    In a bailout situation like we have today, when the taxpayers have to come in, the existing compensation agreements should go out the window.

    Right now, we need to resolve a liquidity problem so our lenders can resume lending. When we get into calmer waters, that will be the time to deal directly with the CEO issue. That will also be the time to deal with the incompetence of our congressional representatives – in both the House and the Senate. An incompetent CEO will seldom cost taxpayers any money. Incompetent Representatives and Senators can, and are, potentially costing us a fortune.

    Congress is the “Great Regulator.” But the morons we put in Washington don’t understand the businesses they are regulating. They regulated the mortgage lenders, but not the mortgage brokers who originate some 70 percent of the loans. That’s like requiring automakers to make engines that will run on lead free gasoline, but not requiring the oil companies to get the lead out of their gas. And it was politicians that forced the lenders to lower their credit standards so more lower-income families could “own” their own homes. Now, WE are going to own their homes. When we get to the bottom of all the crap, Congress will be the last and largest piece remaining. Stan O’Neal may have run Merrill Lynch into the ground, but our Congress is responsible for all but running US into the ground.

    You will probably never hear an elected official take ANY blame for his or her “contribution” to the current crisis. But they started the ball rolling. Those stupid social engineers have brought us to the brink of an economic catastrophe and all they can do now is point fingers.

  • 1 decade ago

    When Republicans get laid off, like everyone else, after CEO's cut more and more jobs in this downturn, perhaps they will let go of this view that giving tax cuts to the rich creates jobs. CEO's don't create jobs. Well, unless of course you are a limo driver, an interior decorator, a landscape architect, a private jet pilot, or a domestic servant.

  • Anonymous
    1 decade ago

    Great point. Suffice it to say that greed is a cancer among the neo conservatives for which there will always remains no cure. Certainly their lack of taxation has contributed in some part to the 5 plus trillion dollar debt accumulated by the Bush administration in a mere 8 years. Anyone telling you otherwise is pissing on your head and telling you its' raining.

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  • 1 decade ago

    Very rich people, proportionately, pay few taxes. Either they

    have their own high paid tax attorneys or they can use the

    co, staff FOR their planning. Rich people and businesses

    support politicians so of course there are tax breaks for them.

    Many companies are overly generous with their top management

    and board of directors, but pay damn little to their stockholders

    and average working stiffs.

    Where is Elliot Spitzer when we need him?

  • Anonymous
    1 decade ago

    HECK YES!

    Clearly those CEOs were too distracted trying to figure out tax shelters for their own money and coulnd't spend enough time running the show!!!!

    Once again, I have to place the blame squarly on you LIEbrals.

  • 1 decade ago

    Maybe being the victim of OVER BONUSES but I would have to see their tax return to see what their tax status is. But if they are making good money they can hire good CPA's and that is usually NOT a formula for overtaxation.

    :-)

    Peace

  • Anonymous
    1 decade ago

    CEOs, are by definition, the best back-stabbing con man in the company.

  • Anonymous
    1 decade ago

    Yes, they are.

    There's no early reason to single out CEO's for higher taxes except class warfare. You have to be prone to prejudice to buy into this phony argument.

    Patriots believe in equality and so it's difficult for us to hate someon because they're more successful than we are.

  • 1 decade ago

    No, they're "victims" of their own excessive GREED. Their taxes had nothing to do with the meltdown.

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