Friday, January 23, 2009

Being Slapped on the Wrist

John Thain has resigned from Bank of America after redecorating his office to the tune of $1.22 million dollars after his company received a government bailout totalling $45 billion dollars. What I didn't report here in my earlier post is that Thain's driver was paid big loot too.

According to MSNBC, "Thain also paid his driver $230,000 for one year's work, which included the driver's $85,000 salary and bonus of $18,000, and another $128,000 in over-time pay, documents show. Drivers of top executives are often paid about half that amount."

Thain's resignation will be a simple slap on the wrist if he resurfaces as a CEO or senior executive of another major corporation that received government assistance anytime soon.

2 comments:

Bob Foster said...

Judith,

I just read that John Thain's forced resignation came about after it came out that he had issued $3 to $4 BILLION in employee bonus's just days before Bank of America took over Merrill Lynch. He did this even though Merrill lost over $27 million for the year. This would ultimately be covered by taxpayer money, so I wonder where greed and stupidity turns into criminal negligence--or worse.

Unfortunately, I'm afraid you are right, and Thain will end up as CEO of some other big corporation--hired by a Board of Directors that are thinking...what?

Bob Foster

Judith Ellis said...

Bob - How terribly sad is that? 3 billion in bonuses? Private companies can do exactly what they want to do. What concerns me is how public funds are dispersed.