Wednesday, February 3, 2010

ITEM #6: CAP EXECUTIVE PAY

The banks are using their fee structure to force you to part with your hard-earned money so that they may redistribute the wealth to a select few executives. This is an abusive policy designed to bite the hands that feed it. Furthermore, executives receive gigantic bonuses regardless of whether the company does well or not (and whether it is legal at the time or not). Ken Lewis walked away from B of A with a reported $53 Million bonus. How much of that did you fund last year? And was your bonus anywhere near $53M?

This redistribution of wealth steals from your quality of life. Imagine how the money you paid Bank of America in fees last year could have worked to enrich you. But you had to deny yourself certain of life's pleasures because the bank president was busy getting fat off of your hard earned money.

Demand number 6 is that banks cap their executive pay to a percentage of the bank’s income (max. 0.00125%) and that bonuses are also calculated based on annual profits (max. 0.00015%).
We do not put our money in banks for it to be used to pay obscene salaries and bonuses to the company’s head honchos. It is safe to say that most of us would like to retain a good portion of what goes into the bank executives’ pockets. By capping the executive pay, the bank will no longer need to collect as much in fees.

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