Thanks Obama for pimpslapping the Citigroup idiots

[FUS1ON]

Just to show that I can give props when I think they are warranted ....



Citigroup won't be getting a new corporate jet after all. Under pressure from President Barack Obama, one of the nation's largest banks reversed course, announcing that it will not take delivery of the jet it had planned to purchase before the credit crisis unfolded.

The canceled deal came as many politicians voiced concern about how banks are spending government bailout money.

The White House reached out to Citigroup on Monday to reiterate Obama's position that such jets are not "the best use of money at this point," calling them "outrageous" spending for a company getting taxpayer dollars, said a White House official who spoke on condition of anonymity because the official was describing private conversations.

The rest of the article
http://news.yahoo.com/s/ap/20090127/ap_on_bi_ge/citigroup_jet

[Sirc]

Pimpslapping? That was so politically incorrect. :P

[JIMINATOR]

eh, they need to bitch slap all CEOs in all companies. They are pretty much nothing but thieves wearing suits. The problem though is that they get to decide what their salary and bonuses are. Common shareholders have very little say in the matter. CEOs like to take credit for company growth in booming economies. Are they reducing their salaries or giving back bonuses after last year? Shit no, business as usual. Now to be honest there are some that have opted for no salary except options, but those are the very rare exceptions.

[Nitro]

Someone needs to go Robin Hood on their asses

[Slay]

Someone needs to go Robin Hood on their asses
I'd VOTE for that :thumbs: :D

[Pure_Evil]

I'd VOTE for that :thumbs: :Dmake that 2! :thumbs:

[OUTLAWS Tip]

3rd!!
Layoff employees, Make unGodly salaries and get bonuses for company losses!
:down: :down:

[JIMINATOR]

another bitch slap
http://jezebel.com/5143130/senator-claire-mccaskill-will-cut-a-wall-street-bitch

[FUS1ON]

Holy crap I love that woman!!! :D

[Caged Anger]

agreed!

[EXEcution]

another bitch slap
http://jezebel.com/5143130/senator-claire-mccaskill-will-cut-a-wall-street-bitch

Nice! Senator McCastrate!

[Death Engineer]

I completely agree that bailout companies buying jets is rediculous. And I appluad Obama for taking a stand.

I do not agree that all CEOs are scumbags. We know of a few that are and I'm sure there are more that we haven't heard about. But there are also the others that treat their employees with respect and use their resources both wisely and benevolently. We don't hear as much about those kind of folks, but there are two sides to every coin.

[FUS1ON]

And the Citigroup story gets even more F'ed up.


Just weeks after Citigroup averted total collapse with a $45 billion shot in the arm of taxpayer cash, the bank jetted its former CEO and his family on one of its corporate jets to a posh Mexican resort for New Year's, The Post has learned.

Sandy Weill, 75, hopped aboard the tanking bank's Bombardier BD 700 Global Express on Dec. 26 with his wife, Joan, daughter Jessica, her husband and their children. They flew from Westchester County Airport to the Los Cabos shore region in sunny Baja, according to aviation records and sources familiar with the trip.

The holiday jaunt came the same week that Citigroup - which lost $28.2 billion over the last five quarters and cut 75,000 jobs globally in 2008 - agreed to curtail runaway corporate expenses as part of a deal to get the massive influx of federal money.

The rest of the article
http://www.nypost.com/seven/02012009/news/worldnews/citis_sky_high_arrogance_152995.htm

[JIMINATOR]

it is important to note that CEOs are really employees of the shareholders, (and most will own shares in the company), somewhat similar to the way that congressmen are the employees of the US government. So we grimace when congress votes themselves a raise. If we dislike the fact enough we may vote them out of office. Shareholders are given no such options when CEOs vote bonuses, pay raises, golden parachutes and stock options for themselves. Shareholders may file a suit or push for a vote but good luck. The only real option they have is to "punish" the company by selling their shares which is not ideal after the share prices have already been decimated by the economy.

[Death Engineer]

Hmmm. That's not really true. Those shareholders could make some noise about a CEO (as well as anything else) and cause him to lose his job unless the CEO holds a majority of the shares in the company. Whatever the case, I think the typical thing is for all of the shareholders to jump in the "I want more" boat and give themselves all raises. Then they're all happy until they run out of money.

My point is that it's not like CEOs are the only greedy ones and the shareholders can't do anything aobut it. The executives with large percentage control in companies are just as greedy and irresponsible.

[JIMINATOR]

Well, this is the western society, which for the most part is a materialistic society. Here people will "invest" to see a "return" on their money. Bank accounts will pay ~1.5% to 2%. CDs will tie up money for a period of time and pay correspondingly more money for that period of time. People invest in order to see a > 2% annual return on their money. Depending on the company there will be a certain risk/reward ratio. It is gambling to a degree, choosing the right company to invest in, the right time to invest and the right time to sell. Shareholders do not get raises, they may get dividends (quarterly or annually, 1 cent up to 2% based on share value), which is actual cash. They cannot vote themselves anything aside from what the board places up for a vote. Other companies do not pay dividends, they reinvest profits into the company and "pay" by increasing shareholder value. (Ie: warren buffet, BRKB) The shareholder can then sell to collect his profit. Yes, there is a heavy element of greed in all this, that is human nature. But it is also retirement accounts, pensions, and life savings that we are talking about. So CEO compensation is on a yearly basis. Shareholder compensation may be on a yearly basis or at time of sale. The former really sounds better to me, it gives money back for reinvestment. The problem with the latter is that during downturns much value gets wiped out, poof, to nothing. I think the compensation rules should be made to pay executives with stock. (not options). Thus if the company does well, they make a lot. Goes bankrupt, then they get jack shit like the people they screwed.

[Death Engineer]

Oh, I completely agree that executives are paid far too much annually for the jobs they do. My situation is a bit different as there are only 2 people who own shares in our company. As such, I have a strong say in what happens despite the fact that I have a minority ownership.

We are not a public company (obviously). I think that changes things dramatically. Especially when you consider that myself and the other owner are paid less than several of our other employees. We can afford to do that because we have the business upside. And we are taking the long view rather than the short term invest/return philosophy.

[JIMINATOR]

good news is that obama is placing a 500k cap for executive pay on companies that receive bailout money. No doubt many will flee to more lucrative jobs.




if they can find them. :rolleyes:


http://www.guardian.co.uk/business/2009/feb/04/obama-bank-salary-cap