Thursday, March 19, 2009

Thinking Aloud - Illusions & Collusions Chapter 2


I was trying to book some hotel accommodation in a foreign country and I came across a few hotels that described themselves "Gay Friendly". Hmmm... I kept wondering what being gay friendly would entail for a hotel. Will the concierge wink at me a lot more? Does that mean that the staff will not sneer and laugh when I wear my pink fishnet t-shirt? Does it mean that the hotel provides guests with very very tight short shorts or short silky bathrobes in matching colours? Or does it mean that the hotel staff all speak in hushed, soft, effeminate tones? Or the door handles are specially designed for those who are of limped-wrists? Or does the hotel room decor comes in a variety of colour choice - colours that normal people would never be able to identify or pronounce properly... such as fuchsia, lavender blush, azure, chartreuse, pale turquoise, cyan, ... and the two probably very popular colours in dark goldenrod and burlywood??!!

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The current craze and anger over finance executives' compensation and bonuses are justified. For my life, I could never understand how and why options granted to employees are not expensed out or deducted as a real cost!!! If its of no real cost/value, then the employees should not even find getting these options as attractive at all - if they want the options, it must because there is a value.


The other piss me silly thing is how financial industry (and other senior management of top corporations) employees can be drawing $200,000-$500,000 and still justify bonuses and stock options running into 2x, 4x, heck some even 10x their base pay. The most ridiculous defense given by them is "we need to align the interest of the executives with the shareholders". CBMF... give you $200,000-$500,000 a year also NOT ENOUGH to align your interests with the shareholders' interest??!! I guess the $200,000-$500,000 salary is only for me to fuck around in the company - interesting lesson, that should be in Management 101 for all MBAs. So, you are saying that you got $500,000 to work at a company but your interest will NOT be directed towards making the best returns and nurturing the best growth plans for the company... which pays you $500,000 a year UNLESS you get a truckload of bonuses and options???!! Please go jump off the nearest building.

p/s photos: Jessica Hester Hsuan



5 comments:

Rocky said...

I think in the Western world, most if not all bankers are overpaid for their supposed intelligence! They make money maybe 90% of the time. And lose them back in the 10% of bad times ! Then taxpayers have to bail them out.

I would love to see more bankers to go to jail for fraud - misleading investors into buying stupid products for personal gain. Somebody in AIG, Citi should face jail time. Not just madoff.

Now the entire US dollar look like a massive Ponzi scheme ! Which currencies are safe now?

Jasonred79 said...

Gay friendly hotels are the ones which are not UNFRIENDLY towards gays... you know... like where if two guys want to check into the honeymoon suite, they get people giving them dirty looks? I assume that their spa/ health centre also caters for gay services. (like how our local hotels have package girls)

tohff7 said...

at least malaysia is not as bad as US in this compensation and stock option issue. but well, corruption and leakage rule. =(

see said...

US banks loss making and some insolvent yet they given bonuses?! Where did performance linked bonus go to. The whole country, I mean the whole world economy is tanking and rising unemployment caused by those morons yet they need bonuses! Either they are dense or greedy or both. Chop their hands off shariah style. Their reasoning is bonuses is to keep talent? Duh, if they walk out the door where are they going to with high unemployment

WY said...

I think shareholder's activism is a check and balance way on compensation and option.
Agreed with you, option as real cost.
Maybe should have cap or heavy tax on option for bailed-out companies.

Shareholders have been too lenient on companys' management in M'sia. Most agendas are agreed too easily no matter whether is reasonable.

I feel very bad attending AGMs in M'sia. Congratulatory comments are given no matter whether it is indeed congratulatory. Critical questions are brushed off lightly. Nonsense comments are abundant.
Peoples rush to approve agenda to have the free meals. Sigh !