ceremorphosis

“It is shameful.” That was President Obama’s comment about the $18 billion in rewards the executives of failing banks gave themselves over the last two months. That’s $18 billion of our money.

Today, Obama took it beyond just rhetoric:

As part of the reforms we’re announcing today, top executives at firms receiving extraordinary help from U.S. taxpayers will have their compensation capped at $500,000 — a fraction of the salaries that have been reported recently. And if these executives receive any additional compensation, it will come in the form of stock that can’t be paid up until taxpayers are paid back for their assistance.

Companies receiving federal aid are going to have to disclose publicly all the perks and luxuries bestowed upon senior executives, and provide an explanation to the taxpayers and to shareholders as to why these expenses are justified. And we’re putting a stop to these kinds of massive severance packages we’ve all read about with disgust; we’re taking the air out of golden parachutes.

Could not agree more. It’s our money being used to enrich those who made these grave errors. Rewarding financial failure should not be the American way.