Saturday, August 01, 2009

Sorry Jack, One Good Speech Doesn't Make A Winner.....

Kelly McParland: Jack Layton keeps getting paid for underformance
Posted: July 31, 2009, 11:00 AM by NP Editor

A few days ago I posted a press release from Jack Layton, in which he complained about executives at pension firms getting bonuses in a down year, adding a snarky comment of my own. Jack didn't have such a great year himself, I pointed out, so why is he still getting paid? I thought the point was self-evident, but a number of readers complained that they didn't get it. So I shall elucidate.

Layton's initial complaint was a class-based cheap shot hoping to cash in on lingering resentment about the rich bonuses awarded to well-paid executives at financial firms. There was justifiable outrage in the U.S. when people learned that million-dollar bonuses were going to some of the same fat cats at AIG insurance who helped cause the economic meltdown by placing huge bets on high-risk investments while ignoring the enormous dangers involved. AIG had to be rescued with a US$173 billion bailout, yet the executives still wanted their bonuses, as did their colleagues at a number of other bailed-out institutions, notably Merrill Lynch. Layton extrapolated on these cases to ask why executives at Canada's Public Service Investment Board were getting bonuses despite a $9.3 billion loss this year.

So what's wrong with that? This:

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