Compensation at AIG
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Edward Liddy, who is chairman and CEO of American International Group, testifies before Congress today on why the troubled firm gave employees bonuses ranging from $1,000 to $6.5 million after receiving $170 billion in government assistance. We get the latest Gail Chaddock of the Christian Science Monitor. We also hear from New York Times Business Columnist David Leonhardt about “retention pay,” and Alex Edmans, at the Wharton School of Business at the University of Pennsylvania about what he calls “dynamic incentive accounts.”
A formerly vacant home bought up by a Detroit couple looking to transform their neighborhood. (The Powerhouse Project)
Renewing Detroit
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As foreclosures continue to pile up, there are parts of Detroit where homes are selling for as little as $1. A group of local artists have started buying up foreclosed properties – and they’re hoping to transform their neighborhood in the process. We speak with Gina Reichert, one of the artists.
Pope Benedict XVI Visits Africa
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We speak with Ohio University assistant professor Nick Creary, who studies African Catholicism. We hear how the religion is growing in Africa and how the church’s policies on things like condom use resonate with Catholics there.
West Side Story Returns
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“West Side Story” returns to Broadway, but with a twist. Members of the Puerto Rican gang, the Sharks, and their girlfriends are played by Spanish-speaking actors. Our guest is Arthur Laurents, who wrote the book of the musical, and who directs this production. The 91-year-old Laurents has been busy — this month he also published a memoir: “Mainly on Directing: Gypsy, West Side Story, and Other Musicals“.
Music from the show
- Peter Dixon, “Nagog Woods”
- Paul Simon, “50 Ways to Leave Your Lover”
- The Wee Trio, “About a Girl”
- Yo-Yo Ma, “Bach: Suites for Solo Cello”
- Charles Mingus, “Pedal Point Blues”
- Prologue, West Side Story, Original Broadway Production
- “Siento Hermosa” (I Feel Pretty), West Side Story, 2009 Production
- Quintet, West Side Story 2009 Production
- “Jet Song,” West Side Story, Original Broadway Production
- “Cool,” West Side Story, 2009 Production
- “Un Hombre Asi” (A Boy Like That) West Side Story 2009 Production
- “Somewhere,” West Side Story, 2009 Production
- Leonard Bernstein and the New York Philharmonic, “Somewhere” (Adagio), West Side Story
I suggest a very graduated capital gains structure from short term to long term. Very high tax rate for very short term and very low tax rate for very long term and rates in between. This would also stabilize the market. For corporate employees, their term starts when they accept the stock options and end when the sell these options.
Posted by Carl Christiansen, on March 18th, 2009 at 11:32 amHow a bout a real simplification of the tax structure? For example, everybody pays 12% on income less the first $30,00 for the household. No charity deductions or mortgage deductions and everything is income, salary, bonuses, health insurance, company car and stock options. Tax filings will be one sheet and a calculation a high school student could make.
Posted by Jeff Dodd, on March 18th, 2009 at 11:34 amHow about a companies board and executive management team recognize that the fortunes of the company is dependent of the company as a team. At most, the gov’t should ensure sure that a “rising tide does lifts all boats.” Rather than putting some upper limit on bonus in terms of absolute dollars, limit it to some function of the lowest bonus distributed and a percentage of the total bonus given out to the company staff (and possibly shareholders). This way, the cost of arbitrarily handing out bonus to a truly incompetent executive has a multiplier effect. And for the exceptionally strong company, all parties involved share in the good the fortunes of the company.
Posted by Ketan Patel, on March 18th, 2009 at 2:35 pm[...] bonuses aren’t the problem. Excessive executive pay is. On WBUR’s Here and Now, today, New York Times business columnist David Leonhardt pointed out that the excessive bonus pay at AIG [...]
Posted by AIG bonuses aren’t the problem. Excessive executive pay is. « John McCrory, on March 18th, 2009 at 11:51 pm