Put Away The Carrot And Use The Stick

I have commented frequently on how out of balance CEO compensation is with that of their employees in many US companies. In CEO Bonuses: Necessary or Greed? I expressed my astonishment in the excuse used for these bonuses as "we need them to keep top talent" when that "top talent" has proven incapable of anticipating, and in many ways causing, the greatest depression in this country in almost a century.

Finally someone in Washington is doing something about it. U.S. pay czar Kenneth Feinberg cut the pay for the final two months of the year of the top 25 earners at seven companies the U.S. government bailed out financially earlier this year.

While American International Group Inc, Citigroup Inc, General Motors Co, Chrysler, GMAC and Chrysler Financial finally seemed to "get it", Bank of America trotted out the old concern about losing their "top talent" as a result of this.

What do you think? Did the government go too far? Is Bank of America right? Or does more still need to be done? Use the comment link below to share your thoughts with your peers.