I am a capitalist to the core. I believe in free market. I understand that this is not a ‘perfect’ system, but I do not see any other system that does the most good for the most people and gives incentives for those to create and prosper.
What I do not understand is how many CEO’s can make millions of dollars AFTER they drive a company into the ground. I believe in rewarding profit and positive performance (yes, even in the millions) but not rewarding poor performance.
Furthermore how do BOARDS allow this to happen while shareholders are getting the short end of the stick? Boards who give incentives for performance is appreciated, but in times of loss, how do they have the conscious and lack fiduciary responsibility to shareholders for these atrocities . I’ve heard the argument that ‘we won’t attract the best talent if we don’t offer these incentives.” I call that total bull shirt! There is no way the managers of a company would allow their underlings to get paid a bonus if they screwed up!
Something needs to change! I’m pissed. This is NOT a free market capitalist concept to reward failure.