Wednesday, September 09, 2009

How much should financial executives be paid?

How much should financial executives in banks be paid? Firstly, they are not using their own money to invest. They have no personal risk. CEOs are not stupid, they are the people running the companies, they know how well the company is doing and in what directions the companies are going. They are not going to sweat for the company and let investors enjoy the fruit of their labour. That is why, the stock market is no longer performing on fundamentals. 

If financial executives are paid only $2000 a month, more people will go into the productive side of the economy. 

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