ILRHR4631 Week 3 Lecture

ILRHR4631 Week 3 Lecture - Managing Compensation Spring...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Managing Compensation Spring 2009 ILRHR 4631 Week 3 Lecture Charles G. Tharp Since last we met, what were the HR/Compensation-related headlines that caught your attention? 3 January 30, 2009 Obama Calls Wall Street Bonuses ‘Shameful’ By Sheryl Gay Stolberg and Stephen Labaton WASHINGTON — President Obama branded Wall Street bankers “shameful” on Thursday for giving themselves nearly $20 billion in bonuses as the economy was deteriorating and the government was spending billions to bail out some of the nation’s most prominent financial institutions. “There will be time for them to make profits, and there will be time for them to get bonuses,” Mr. Obama said during an appearance in the Oval Office with Treasury Secretary Timothy F. Geithner. “Now’s not that time. And that’s a message that I intend to send directly to them, I expect Secretary Geithner to send to them.” It was a pointed — if calculated — flash of anger from the president, who frequently railed against excesses in executive compensation on the campaign trail. He struck his populist tone as he confronted the possibility of having to ask Congress for additional large sums of money, beyond the $700 billion already authorized, to prop up the financial system, even as he pushes Congress to move quickly on a separate economic stimulus package that could cost taxpayers as much as $900 billion. This week alone, American companies reported as many as 65,000 job cuts , and public anger is rising over reports of profligate spending by banks and investment firms that are receiving help from the $700 billion bailout fund. About half of that money is still available, but the new administration has yet to announce how it will use it, and many analysts think it will take far more to stabilize the banking system. Should Mr. Obama have to go to Congress to seek more money for the bailout fund to avert the failure of more banks, he would most likely encounter opposition within both parties and demands for tighter restrictions on pay for executives of institutions that receive government assistance… In the meantime, public outrage is already forcing some companies to rein in their lavish spending. John A. Thain , the former Merrill Lynch executive who was forced out of Bank of American, said this week he would reimburse Bank of America for an expensive renovation of his office that included an $87,000 area rug and $35,000 commode . 4 McCaskill on corporate executives' pay: 'These people are idiots' By STEVE KRASKE and DAVE HELLING The Kansas City Star Breaking News Sen. Claire McCaskill — steaming mad and not going to take it anymore — on Friday called Wall Street executives “idiots” and proposed limits on some of their salaries....
View Full Document

This note was uploaded on 03/18/2009 for the course ILRHR 4631 taught by Professor Tharp during the Spring '09 term at Cornell.

Page1 / 33

ILRHR4631 Week 3 Lecture - Managing Compensation Spring...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online