Monday, August 17, 2009

Anytime somebody can nullify a contract, it weakens trade and price stability

Why does it seem even worse when its over employment:

Speaking to a packed house in West Tisbury Sunday night, Kenneth Feinberg rejected the title of "compensation czar," but he also said said his broad and "binding" authority over executive compensation includes not only the ability to trim 2009 compensation for some top executives but to change pay plans for second tier executives as well.

In addition, Mr. Feinberg said he has the authority to "claw back" money already paid to executives in the seven companies whose pay plans he will review.

This reminds me of The Empire Strikes Back, when Lando Calrissian realized that it's really better not to deal with Darth Vader, when the Sith Lord kept changing the terms of his deals.

Darth Vader: Calrissian. Take the princess and the Wookie to my ship.
Lando: You said they'd be left at the city under my supervision.
Darth Vader: I am altering the deal. Pray I don't alter it any further.

Photo link here.

No comments:

Post a Comment