A point of view more and more difficult to defend! What can Lehman Brothers CEO, Richard Fuld answer when Henry Arnold Waxman asks him if it’s fair that he got paid $480 millions when the company is bankrupt? “Almost nothing”, he says!
It’s not possible to anticipate about new regulations that this financial crise will generate. But it’s pretty sure that top management retribution & perks have to be ruled to become more fair and responsible. Even if those practices don’t explain the origin of the crisis, such behaviour concentrates people’s anger against this blind quest of profitability!
In France, MEDEF, the largest union of employers expresses its support for tighter regulation (Source: Novethic).
For this purpose, the German case has to be analysed, the law already provides that in case of bankruptcy the CEO incriminated need to return the sums received: their wages, even their private property. Sounds good but in fact it’s not relevant enough because in reality, they subscribe insurances in order to pay these damages they caused.