Despite my effort to ignore the economy, every day brings new, outrageous information about how capitalism has been hijacked to benefit the few at the expense of the many. In today's WSJ (Banks Owe Billions to Executives, Ellen E. Schultz, October 31, 2008), Schultz says:
"...overlooked in these efforts [to reign in executive bonuses and pay for banks that have received taxpayer handouts in the billions] is the total size of debts that financial firms receiving taxpayer assistance previously incurred to their executives, which at some firms exceed what they owe in pensions to their entire work force."
The practice of deferred pay to executives is good for executives, "who delay taxes and see their deferred-pay accounts grow, sometimes aided by matching contributions."
When did not paying taxes while receiving money from other tax payers become patriotic?
She goes on,
"Obligations for executive pay are large for a number of reasons. Even as companies have complained about the cost of retiree benefits, they have been awarding larger pay and pensions to executives. At Goldman, for example, the $11.8 billion obligation primarily for deferred executive compensation dwarfed the liability for its broad-based pension plan for all employees. That was just $399 million, and fully funded with set-aside assets."
'Nuff said.
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