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I wish there were fines that executives were personally liable for rather than clawbacks. Clawbacks somewhat arbitrarily limit the penalty to the amount earned
by spacebanana7 3y ago
I wish there were fines that executives were personally liable for rather than clawbacks.
Clawbacks somewhat arbitrarily limit the penalty to the amount earned in a way that doesn’t exist in other professions. They also seem to complicate the legal process of enforcement.
- laratied 3y agoAngelo Mozilo is the poster boy for this. He paid a personal fine. He made $470 million running Countrywide into the ground and had to pay a fine of $67.5 million. Retired to live out his old age worth about $600 million. Who is the fool in this equation? Hard to say it is Angelo.
- spacebanana7 3y agoPerhaps he should have paid a bigger personal fine, assuming he was entirely responsible for the institution's failure as a result of misconduct or negligence. My issue with clawbacks is that they set an upper bound of $470 million for a fine in his case, when I think the fine should be whatever it takes to deter lawbreaking.