Shame on You, Wall Street

January 30, 2009

It’s no mystery. The economy is ailing, working families are fighting hard to make ends meet and this week alone, American companies reported as many as 65,000 job cuts. You’d think that in these times of duress everyone would be tightening their belts and pulling together to jumpstart the economy, right? Well, not Wall Street bankers, that’s for sure. According to a report by the New York State comptroller, financial executives received a whopping $18.4 billion in bonuses for 2008. President Obama condemned their behavior as the “height of irresponsibility,” adding that:

“It is shameful. And part of what we’re going to need is for the folks on Wall Street who are asking for help to show some restraint and show some discipline and show some sense of responsibility.”

That’s right. We are talking about the same banks and investment firms that were bailed out last year to the tune of $700 billion because of their own financial irresponsibility. If taxpayers and shareholders take huge losses, there should be no bonuses. Period. This is why for years AFSCME has spearheaded the fight to curb executive pay. Congress should give shareholders a “say on pay” on CEO compensation and “golden parachute” severance agreements. Not only is the compensation awarded to CEOs outrageous, but shelling out excessive amounts of money to a few greedy individuals genuinely damages the economy.