Free E-Book to Starving CEOs

Some random thoughts about the economy and ethics today.

1. President Obama took a small but welcome step toward curtailing corporate abuses yesterday, restricting CEO pay for those companies taking government bailouts to a “measly” half a million dollars. Tom Peters, author of In Search of Excellence, endorsed the idea but said it didn’t go far enough, noting that the myth of the irreplaceable CEO was just that, a myth. He’d like to max out CEO pay at the same level a top general or admiral receives. Not a bad idea!

2. For those CEOs who can’t imagine living on that amount, I assure you that it’s possible to live comfortably, even luxuriously, on far less. I remember when $10,000 per year felt like an enormous sum of money to me. I actually had a job in New York City as recently as 1980 that paid $82 per week of hard work–that was part of the “research phase” for my e-book on having fun cheaply, The Penny-Pinching Hedonist: How to Live Like Royalty with a Peasant’s Pocketbook. In fact, if you’re a CEO who finds this new “limited” income a hardship, contact me. I’ll give you a free copy of the e-book, and the $8.50 you save will be your first step toward frugality. ;-). It’ll save the typical reader between $500-$2000 per year. In your case, it might save you a million or so.

3. Talk about sleeping at the switch! Whistleblower Harry Markopolos not only claims (and, I understand, documented during his recent testimony) that he gave the Securities and Exchange Commission (SEC) enough info to break up Bernie Madoff’s Ponzi scheme as far back as 2000, but also laid it out for a Wall Street Journal reporter who was interested, but couldn’t get the go-ahead from brass, back in 2005. Markopolos had some pretty harsh words for the SEC:

I gift wrapped and delivered the largest Ponzi scheme in history to them and some how they couldn’t be bothered to conduct a thorough and proper investigation because they were too busy on matters of higher priority.

4. The left-of-center political action group MoveOn is jumping into the fray with a petition opposing the use of bailout dollars for executive bonuses. This is from the message you can send to friends after signing, which you can do at https://pol.moveon.org/bonus/?r_by=15503-5426570-ynLMRyx&rc=comment_paste:

Did you hear that Wall Street gave out $18.4 billion in bonuses in 2008? $18.4 billion to the people who crippled our economy with their recklessness and greed and then took $700 billion of our money. Outrageous, right?

Not only did I sign, but I feel any company that took our tax money and then paid even a dollar in bonuses should be made to pay it back. Just because the Bush administration was too incompetent to specify how this money was spent does not mean we have to tolerate this outrage. And forgive me for being out of touch, but I always thought bonuses were something you earn through stellar performance–not for running your company, and the economy, into the ground.