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Let's extend the metaphor: if the execs are pilots, and the employees are passengers, then having parachutes for the pilots but not the employees constitutes a
by dsr_ 4y ago
Let's extend the metaphor:
if the execs are pilots, and the employees are passengers, then having parachutes for the pilots but not the employees constitutes a moral hazard.
- vkou 4y agoIt's only a moral hazard if the execs are working for, and are accountable to the employees. They don't, and they aren't. They work for, and answer to the owners.
- usrusr 4y agofootnote: for certain values of "moral" (you are right though, the term "moral hazard" is surprisingly well defined and basically has nothing to do at all with the sum of its parts)
- dsr_ 4y agoIn that case, having parachutes for the execs is a moral hazard.
- vkou 4y agoYeah, but that's a problem for the owners. Who are big boys, and can probably navigate this conflict of interest out without us. Or if they want to keep pissing away their money, they can keep hiring clowns that ruin their companies, and then pull the ripcord. It's their money on the line, not mine.