Wednesday, April 29, 2009
Citi seeking OK to award bonuses
Hasn't the government learned its lesson from the AIG debacle that caused public outrage and media scorn involving bonuses to TARP recipients. For Citi to have the gumption to ask for bonuses to be awarded to top executives to keep them from fleeting ship is something that I see as concerning. Yes, we want the companies to succeed and for that to happen we need to have skilled and properly trained executives in place. However, boosting the morale of the employees is not the only way to accomplish a successful turnover and so giving additional stock options is really not something I think we should be considering at this time. If employees are so negative about the state of the company then giving them some stock options merely gives them a bit of an incentive to make the company sound again, but we have no clue to what degree that boost will be or if they will merely walk out during a rough patch again. I hope the government takes the stance against bonuses of this nature because in the scope of things we need employees running those companies that are committed to the success because they enjoy what they do and see the value in being part of recovery rather than people who solely stick around because of the incentives that they can earn.
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