Wrote Earlier on Mouthshut-
Most of us have at some point or another opined on how the West rather the U.S. with its barrage of Capitalist posterboys have been icons our Indian Counterparts are expected to follow. How at several points we've been told that accountability and corporate governance of the west is something for people closer home need to emulate.Corporate Governance from the West???
Subprime mess to many would require no introduction. Today TOI reported that a U.S. citizen killed self and family as a consequnce of the Job losses. The whole world is in a tailspin. Noone is sure, secure about tomorow. Each passing day throws some bad news about the economy.And then you have the best news of all.
In one of the worst crisis to ever hit the world in the past 30 years we have Merril Lynch's Former Ceo, John Thain spend $35,000 on a commode. i.e. Rs 17,50,000. Quite an expensive potty!!!He had $1.2 Million spent to renovate his new office. Probably use the new environment to cope with an economic one never seen before. That's Rs 6 cr just on renovation. All this at company expenses.The audacity of bank bosses is quite commendable. You have governments who are injecting billions into the economy by buying bad assets, create jobs and revive demand in various sectors. Indirectly it's revived surely in one sector- Sanitaryware.
This lavish over the top expenditure has come at a time when the U.S. Banks are reeling under pressure, thristy for funds. At a time later when Merrill was sold out to Bank of America just to keep it afloat. At a time when the world is screaming credit crunch, at a time when there's no Lehman brothers, no jobs, John Thain flushes down in style!You then had beggars actually come in corporate jets. Remember the General Motors Ceo and his kin flying down to ask the govt. for funds. It took some public criticism to actually get them to come in Cars that to Hybrid ones!!!Now you have Citigroup that needs to be told by the U.S. Goverment to cancel a purchase of a Corporate Jet.I'm not sure whether these bosses will ever learn. The've ensured a safe landing for each one of them.
Merrill paid $4 billion as bonuses when the company actually incurred a $ 20 billion loss. Surely they deserved it!!!Richard Fuld escaped with his millions, Stanely O'neal went out on a neat pay. So where's the accountability in a country which preaches about capitalism and all its goods, about how the markets punishes non- performers and rewards only success. The $ 4 billion bonus payout surely wasn't rewarding success.....