Lead 'Chutes for Fannie, Freddie Execs

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  DEisenhauer09/19/08 Report as spam
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  RE: Lead 'Chutes for Fannie, Freddie Execs

  I believe this would fall under the heading " Responsible Corporate Governance", if there is any such thing any more. In addition, we get into efficient and effective corporate policy formulation and administeration, not to mention personal and corporate collective positive ethical practices. This situation, goes a long way towards reenforcing the position, that the CEO and the COO should not be the same person...

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  vrsarti09/19/08 Report as spam
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  RE: Lead 'Chutes for Fannie, Freddie Execs

  What Fannie and Freddie execs received was not a Lead Parachute. They simply removed the parachute. If the execs had to repay some of their compensation, it would be a Lead Parachute.
  
  By the way, what happens in China in these kinds of situations? They take the guy out and shoot him. Remember those news flashes. I am not in any way advocating that. But perhaps paying back a % of the compensation would be appropriate.
  
  The people at the ground level, sales professionals and sales managers have no parachute. If they knock it out of the park they get rewarded and if they fail, they are unceremoniously pushed out of the plane with after the exit interview.
  
  To the comment stating "No golden parachute for executives will only chase away talented executives.
  
  I believe the opposite to be true. No golden parachute will only chase away the weak, the uncaring, and the inept. That is probably a good move. Those execs who don't want to have skin in the game should probably not be trusted with a position.

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  alang1@...09/19/08 Report as spam
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  RE: Lead 'Chutes for Fannie, Freddie Execs

  Let corporate boards set the annual pay of executives as some % of the compensation package. And the compensation package pays out over a period of time - say 5 years. It might keep management from Jacking a company hard and walking away from its collapse with a nice retirement nest egg.
  To me it would seem the term "talented executives" is a joke today. Their talent seems to be more of a con game with shareholders and tax payers.

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  ecbvienna8809/19/08 Report as spam
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  RE: Lead 'Chutes for Fannie, Freddie Execs

  One of the best comments on executive compensation I've ever read is by Nicholas Kristof of NYT/IHT fame (link below).
  
  http://www.nytimes.com/2004/03/06/opinion/06KRIS.html?ex=1393909200&en=658e6890dfcd5bf9&ei=5007&partner=USERLAND

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  ashisin09/19/08 Report as spam
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  RE: Lead 'Chutes for Fannie, Freddie Execs

  In the corporate world it is really difficult to know how strategy will pan out in the long term. You can come up with the worst case scenarios but there are always a few uncertain factors which will skew the best laid plans. I am not advocating or commending the fannie and freddie execs but if you levied a penalty for failure you'll end up stifling creativity. People will refuse to take risks. And since strategy is normally long term how do you account for the one implemented before you time?
  
  Alang1's comments of payout over a period of time makes sense as this turns them into creditors if the company does go down then they loose what's owed or will be on par with the average shareholder with no preferential treatment but how fair is that?
  
  What if the follow up COO has jimmied the company how do you know where to draw the line and whose mistake is it?