The pay czar Mr. Feinberg’s forecast that executives would not flee from pay cuts has already been proven completely wrong since executives have left the firms in question already in droves.
It might have helped if the person deciding the compensation for the leaders of multi-billion dollar global franchises even knew what the going rate was for these people.
New York Times: “I wouldn’t begin to say how much money you should make on Wall Street,” Mr. Feinberg said in an interview last week, as he prepared to slash pay for the top 25 earners at seven firms that received significant government aid.”I’ve never worked on Wall Street. I don’t claim to know the ethos of Wall Street.”
Bankers regaled Mr. Feinberg with similar concerns in the months it took to prepare his order, but he said he thought they would be left with enough pay to persuade them to remain in their jobs.
“If any one of these people left, I would be very disappointed,” he said.
Mr. Feinberg waded through tens of thousands of documents and spoke with scores of executives, consultants and officials who wound up influencing the shape of the rules.
Yet he didn’t realise execs could just quit and go make more, just around the block. His treatment of the subject, and the results we’ve already seen, suggest just how arbitrary and uninformed his decisions may have been.