Well, when everybody from the front line mortgage advisor to the CEO gets rewarded based on what they do RIGHT NOW, who can afford to think about long-term security? Everybody got rewarded for issuing more and more mortgages RIGHT NOW. Nobody was rewarded for making sure the company would still be around 5 years later. When everybody gets rewarded for short-term thinking and nobody gets rewarded for long-term thinking, how could the outcome be anything other than what it was?
Unfortunately, this is not just the problem with business but also our politics.
Dick Fuld told the Congress panel that he felt really really bad that a 150 year old company died under his watch. But at least he had $300 million of performance bonuses in his bank account to ease the pain.
And he never got punished and he never had to give up any of his hundreds of millions, nor did any of the others involved.
Home
Contact
Login
Register