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Top Executive made millions as firm foundered

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Top Executives Made Millions as Firms Foundered

Introduction

As the financial crisis continues to worsen , some Wall Street and bank executives received hefty payments and bonuses despite the fact that their companies were in big financial trouble . As the economic recession sent shock waves across the world , a lot of banks and businesses were severely affected , leaving their investors and clients in huge financial turmoil . In the United States , after the collapse of the Lehman Brothers and the multi-billion bailout of the American Investment

Group (AIG several banks and businesses like giant automobile companies went to Washington to ask for taxpayers ' money . The issue of huge bonuses and financial perks amidst the economic crisis gained media attention and public outrage . The question now is : do executives of troubled companies deserve to get big bonuses ? Can the government intervene by setting caps on their take home pay

Fat checks vs . economic reality

Reports revealed that some privileged bank and business executives obtained heavy bonuses despite driving their companies into the ground In spite of the recent collapse of the stock market , a number of chief executives ' take home pay continued to escalate . In business , common sense dictates that every executive must be paid according to his /her performance . If an executive gets his company into a financial trouble then he should be responsible for his mistakes to the stockholders . The current payment scheme of most distressed companies belies economically troubled times

Consider the case of a number...

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