Obama’s socialism czar, Kenneth Feinberg, has decreed that recipients of federal bailouts must cut the compensation of their top executives.
In the private world, the real world, the capitalist world, people need incentives to perform. Outsized salaries and benefits provide just such incentives. Look at Goldman, JP Morgan and others that have been declaring massive profits over the past few months.
Cutting paychecks will only cause these companies to behave more like government entities than their private competitors. Why would the head of a division work 100 hours a week at this company when he’s getting paid half of what his counterpart gets paid at a different firm? He can switch or stop working as hard…
Why does it feel more and more like the Socialist States of America?
