18
02
2008
Northern Rock and Alistair Darling in Shotgun Wedding
Posted by: Beau Bo D'Or in Uncategorized, tags: Alistair Darling, animation, bank, Chancellor, Current Events, Gordon Brown, mortgages, nationalised, Northern Rock, Politics, Sub-Prime, Virgin“Do not forsake me, oh my darling, On this, our wedding day.”
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Subject:
The nationalisation of Northern Rock
I do not wish to comment on the rights or wrongs of the nationalisation issue in this case.
But I do have certain concerns they are;
1 The fact that the majority of the senior executives who were there when the bank got into the mess, which caused it’s downfall, would still be employed on their old employment contracts.
Contracts which could contain a profit related pay element. Which in the passed, had provided them with obscene levels of bonuses.
Bonuses could range from hundreds of thousands to millions in some cases.
(It was reported in the media that one chief executive of a large company who was forced to resign due to some scandal, resigned six months before he was due to receive a three million pound bonus.)
With these sort of sums on offer it is not surprising that executives are tempted to, turn a blind eye to good prudent business practices, and tend to take to many risks, not supervise juniors properly and input and encourage unfair practices.
It could also be argued that their motto is ( I DON’T GIVE A DAM, ANYTHING AS LONG AS I GET MY 100,000.00 BONUS.)
The top men have gone but the others are still there, they have had the rewards in the passed and screwed up, surly it is payback time.
As customers the banks screw us all, they would say “ that’s business”, but I fail to see why as tax payers we should be worked over again.
Excessive bonuses should be stopped! Bonuses capped, good quality, fair and ethical work rewarded, fairly.
Someone should take a look at the records of the company go back say five years or more and check the level of bonuses.
Also check the difference in the level of bonuses paid to the different tiers of the management structure. I would not be surprised to find that the company was making profits from the lower level employees profit related pay scheme.
And that the difference in bonus levels getting progressively larger the higher up the pecking order you go.
Any organisation relies on good quality supervision and there are bound to be some there, they are the ones actually doing the work, they will be holding up four or five dead wood executives who will be the first to claim the credit for their junior’s good work, and they will also be the ones that the seniors will blame for their own failures.
When the company is restructured I hope that the team which does the restructuring manages to identify the people of quality and keep them, be sceptical don’t allow good quality grafters to be sacrificed to save the inept incompetent pratts . You need quality grafters to succeed.
Mr K Evans.