They are absolutely pornographic salaries and bonuses that these guys, the managers of financial firms to charge us marvel at his extraordinary acts of management.
was based on the decisions of these highly paid managers who have built these great and gleaming financial giants based on very shaky ground and with the results that we all have to be seen.
admit that I was never a great understanding of economics, and I never understood some of the financial products they could not see where it would exit the revenue needed to sustain them. Always seemed to me that the model was based on speculation and continues that at some point it would be untenable, which seems to be happening.
Moreover, I believe that the financial model of scholarship, which I understand to be based on a requirement of continuous growth results of listed companies at some point reach a similar situation as the market is not infinite.
Already at the time of the Internet bubble, I could not understand some business model that relied on asking millions to investors without providing any revenue source and its only indicator the number of hits from visitors. There were millions in expenses and revenues did not exist and I did not understand how these projects were financed. Anyway ....
I believe that after all, I do not understand these complex business models, will not be a problem derived from my intellectual incapacity and unpreparedness specifies, but the fact that these models are authentic bulls, where a lot of "experts" can make a huge number of people believe that these models work and what they will bring progress.
What I would like to share with all of this article, published by Carlos Rosado Carvalho, Journalist, on 1 October 2008 in the Economic Daily. ____
Executive pay
In the five years preceding the crisis, administrators the five largest U.S. investment banks received 3100 million dollars.
The crisis in financial markets has put the matter again with the salaries of top managers of today. According to news agency Bloomberg, the five-year period 2003-2007, the administrators of the five largest U.S. investment banks - Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers and Bear Stearns - have received 3100 million dollars. This amount represents only 3% of the profits of the five in the period, but we must not forget that some of these results were based on sand castles.
Stanley O'Neal, chairman and CEO of Merrill Lynch through October 2007 leads the list with $ 172 million in the five years between salaries, bonuses, shares and options to purchase shares. To this are that total approximately 160 million dollars, according to calculations by The New York Times, the executive would receive as compensation and retirement plans.
"We would like to thank Stan leading the transformation of Merrill Lynch in a global and diversified company with enormous potential ahead," said Alberto Cabriori, newly appointed 'chairman' of the interim bank.
Compliments of circumstance at the time of farewell are normal in any organization. But as is now proved - on September 15 last Merrill had to be bought by Bank of America to avoid bankruptcy - Cabriori exaggerated. At least it was unwise.
is that O'Neal left Merrill with quarterly losses of 2300 million dollar and depreciation of assets of 8,400 million dollars, part of which have been related to mortgage crisis that came to the attention of the public only in summer 2007 but that certainly was no secret to top bankers. The recklessness of
Cabriori can only be justified in light of power relations within some companies that groups of managers function as a kind of clan, protecting each other. It is perhaps no coincidence that Cabriori was the first administrator to put O'Neal on his team when he ascended to the leadership of Merrill in 2002.
In the capitalist system, the power companies begin to belong to one person: the founder. As a capitalist and manager only has to give satisfaction to himself.
With the demise of the founder and the dispersion of capital stock, the power falls into the hands of professional managers. In some, the president of the company becomes the king in a court composed of his fellow directors and other senior company paid princely as if they were geniuses. According to Bloomberg, in 2007, when the crisis has made itself felt, on average, each employee of the five largest U.S. investment banks, received $ 353,000, of which 211,000 related to premiums.
No comment.
Carlos Rosado Carvalho, Journalist
Published 1 October 2008 in the Economic Daily
Original article in http://diarioeconomico.sapo.pt/edicion/diarioeconomico/opinion/columnistas/pt/desarrollo/1170721. html
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Maybe it's time for these "managers" to be held accountable for their actions, and for lack of better alternatives, I propose to be lynched in public, like impaled for 10 hours by a character style Rocco Sifredi, or even better by a Long Dong Silver, but with the "instrument" folded. This would be televised live worldwide, with 24 cameras, and repeat every 24 hours over three years.
I think they deserve a lot because to make matters worse none of them is my relative or friend and I could not enjoy these riches that led to them and their friends.
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