I'm reading the details of the Big 3 automaker's recent request for a $25 billion bailout. Specifically, I'm referring to high salaries for executives in the midst of multi-billion dollar losses. It's not the amount of the pay that bothers me. CEOs and executives of multi-billion dollar companies are entitled to compensation above and beyond what normal folk should get. What really gets my goat is that the domestic automobile industry has been lagging behind foreign players for years now yet none of these CEOs really seemed to care. Instead of innovating, they decided to ask for a handout. And I'm afraid that the government will give them this bailout for fear that tens of thousands of rank and file employees will lose their jobs. The problem is that it will continue to perpetuate a philosophy of mediocrity amoung the employees of the automakers. Do you think if Yahoo was given a bailout that Jerry Yang would have stepped aside? It took the dramatic act of Yang leaving Yahoo for that company to finally move forward. I doubt any of these CEOs would do the same.
On a side note, Toyota's chief makes about $1 million a year and his company generated close to $15 billion in profits last year. I guess I should be a little upset.