Obama: ‘I Did Not Run for Office to Be Helping Out a Bunch of Fat Cat Bankers on Wall Street’
“Fat Cat Bankers” are not why any of us go to work. There is no better system that we know of for unleashing the power of human potential than capitalism. Like anything else, our system needs to be maintained in order to keep it working well.
When each successive generation continues to enjoy a higher standard of living than the one before it, there is little to distract us from keeping our collective heads down in the food trough. There is nothing like a brutal recession to bring us back to our senses and that’s the good news! We don’t want to waste a good recession by missing the opportunity to clean up some of our excesses from the frothy days that have gone by.
In my mind, big money makes the rules, or at least that’s the way it’s been up to this point in time. Take for example the front line employee at your local big box retailer. If that person even becomes aware of another employee stealing and doesn’t say anything to management, it’s grounds for immediate dismissal, without any form of severance. Looking higher up the corporate ladder into the executive boardroom, we see the compensation review committee as just one example of where big money turns a blind eye to transgressions that are far more significant than the petty pilfering that amounts to shrinkage on the retail floor.
We’re talking about directors that cross pollinate, hiring each other to support roles on each other’s boards. The role of these directors is to be the shareholders steward, overseeing management on our behalf. Instead it is not uncommon to hear of compensation reviews that are being performed by the same accommodating consultants who happen to have a vested interest in keeping the favour of the executive management they are reviewing. These conflicted consultants depend on management for contracts that contribute far more significant fee based revenue streams in the normal performance of other cursory auditing functions. The directors are not so incompetent that they are unaware of these obvious conflicts.
The end result can be millions of dollars awarded in the form of stock options and other forms of compensation. Any form of incompetence on the part of the executive team is likely to be met with a significant severance package. Although there may be no law against what they are doing, shareholders, the employees, the customers and stakeholders up and down the food chain are being fleeced. Anyone in their right mind would consider this behaviour to be every bit as evil as the pilfering criminal stealing stock from the retail shelves. Criminal behaviour needs to be addressed at all levels of society, with a force that is commensurate with the destruction it causes.
One can’t help but think of the destruction to the fabric of society that occurs when wealth is disproportionately distributed among those that are undeserving. Honest hard working people and investors at all levels are left to wonder what it takes to live the life of riches enjoyed by the legitimized bandits of capitalism.
fat cat bankers | legitimized bandits of capitalism | Obama | unleashing the power of human capital | big money makes the rules