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At a minimum the executives should lose their net worth. We are always told that they do the risky work which means that they should also have downside risk. Wh
by Ididntdothis 7y ago
At a minimum the executives should lose their net worth. We are always told that they do the risky work which means that they should also have downside risk. When you look at executives at Wells Fargo, Equifax and other companies it seems they have huge upside when nothing goes wrong, or smaller but still very big side upside when things go wrong under their watch.
- smabie 7y agoThat’s not how it works. Limited liability is the foundation of modern capitalism. Without that, the world would be very different and a lot worse.
- Ididntdothis 7y agoThe question is where the limits of liability and rewards are. I don’t think the sky high executive salaries that have developed over the last decades are the foundation of modern capitalism.
- pwinnski 7y agoThere's an enormous gap between undoing limited liability and egregious compensation. Many people agree that over-compensation is a problem, but undoing limited liability spells the end of anything like a market economy, and takes the US dramatically backward. My parents just filed for bankruptcy because the Trump tariffs killed their import business. Should they also be homeless now? That's what comes of what you originally suggested.
- Ididntdothis 7y agoDid your parents or their company do illegal things on a large scale?
- pwinnski 7y agoAs you've already been told, Limited Liability Corporations are part of the foundation of modern prosperity. That is a completely and totally separate issue from illegal activity, and your conflation of the two is incorrect. Illegal activity is already punishable, and the fact that it generally isn't punished is not at all related to limited liability, but to political will[0][1]. It does nobody any good to lash out without understanding the issues. [0] https://www.nytimes.com/2017/07/05/books/review/the-chickenshit-club-jesse-eisinger-.html https://www.nytimes.com/2017/07/05/books/review/the-chickens... [1] https://www.npr.org/2017/07/30/535799735/corporate-bungling-and-political-scandal-abound-in-jesse-eisinger-s-new-book https://www.npr.org/2017/07/30/535799735/corporate-bungling-...
- random314 7y agoYour 2nd and 3rd sentences directly contradict your 1st sentence. Are you disagreeing with the OP or agreeing with him?!
- kevin_thibedeau 7y agoNo golden parachutes if you or your underlings tank a public company. That will incentivize the required internal controls.
- nuclearnice1 7y agoLimited liability applies to the owners of the company. If the company goes bankrupt, the company goes bankrupt. The owners are not personally liable. It doesn’t have anything in particular to do with what punishment is appropriate for an individual who harms the public and the owner as agent of the owner and management of the company.