Once we’re no longer a government bank, we’ll be able to hire decent leadership

Posted by Marc Hodak on December 3, 2009 under Executive compensation | Be the First to Comment

The basic premise of government oversight on compensation is that the owners (or some academic with apparently zero experience in the real world of business) can shovel any old thing they wish with regards to pay, and businessmen just have to eat it.  Ken Feinberg is running into practical problems in applying this philosophy.  This article shows the real life consequences of such a malformed premise.

So let’s spell it out one more time:  What one pays affects the kind of people you get; how you pay them affects the decisions they will make.