SiliconBeat

Here’s another take on executive compensation and the bailout from someone that I really respect, Graef Crystal. For many years, Crystal wrote a column on executive compensation for Bloomberg. Now he’s launched his own Web site where he’s providing some in-depth analysis on issues that touch on executive compensation.

Crystal just posted his view on the debate on the bailout and executive compensation. In sum: Crystal things the bailout and limiting executive pay are both bad ideas:

“How about this for a deal: We don’t bail out the banks to the tune of $700 billion. And we don’t have pay controls on executives, either.”

His concern is that without the proper incentives, the banks won’t be able to attract the talented managers they need to turn themselves around. He also worries that companies will still find loopholes in any new restrictions, and the result will be unintended consequences. Read the rest of this entry »