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Neal,<br> <br> I have been in the compensation business for about 30 years. This includes going through the banking "recession" in the 80's in Texas. I agree with you 100%. The way to get out of a problem is to keep and attract the best management talent available. This is done by paying retention and/or sign-on bonuses.<br> <br> However, we have a Congress and President (and his advisors) who have never worked a day in the real world. We also have some idiot Attorney General who is trying to make a name for himself as his predecessor did by doing the "wealth envy" thing instead of letting management and the stock holders determine what is best for the company.<br> <br> The thing that I have never heard is who these bonuses went to. I know there was a major uproar when Merrill Lynch paid out bonuse in December before the merger with B of A instead of in February when they generally do. I am familar with Merrill's bonus system and most of that money was to middle managers whose primary compensation is the bonus money. It is strictly based on performance whose goals were established well before Merrill's problems started. Of course, as any first year accountant can tell you the cost of the bonuses would have hit the bottom line in 2008 when they were earned so it really was a matter of cash flow.<br> <br> Maybe we should have a Constitution amendment that adds a new qualification for the President and members of Congress. That qualification would be that they had to have worked as a manager in a business at least ten years before they could qualify for these offices. Maybe we could lower that to five years if they had a business or MBA degree.
By John Wallace
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