Comments on: Citigroup Bailout: Socializing Loss after Privatizing Gains http://blogs.law.harvard.edu/philg/2008/11/24/citigroup-bailout-socializing-loss-after-privatizing-gains/ A posting every day; an interesting idea every three months... Fri, 27 Nov 2009 13:53:43 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: ed http://blogs.law.harvard.edu/philg/2008/11/24/citigroup-bailout-socializing-loss-after-privatizing-gains/comment-page-1/#comment-94383 ed Thu, 27 Nov 2008 12:44:46 +0000 http://blogs.law.harvard.edu/philg/?p=1135#comment-94383 Wait for the inevitable securities fraud suits brought by lawyers representing stockholders/investors as well as actions by the SEC. For a preview, check out what happened to Ken Lay at Enron, Bernie Ebbers at WorldCom and the Rigas family at Adelphia. There may also be proceedings for criminal violations. Wait for the inevitable securities fraud suits brought by lawyers representing stockholders/investors as well as actions by the SEC. For a preview, check out what happened to Ken Lay at Enron, Bernie Ebbers at WorldCom and the Rigas family at Adelphia. There may also be proceedings for criminal violations.

]]> By: demetri http://blogs.law.harvard.edu/philg/2008/11/24/citigroup-bailout-socializing-loss-after-privatizing-gains/comment-page-1/#comment-94314 demetri Tue, 25 Nov 2008 03:43:08 +0000 http://blogs.law.harvard.edu/philg/?p=1135#comment-94314 How about a salary based only on profits calculated on a rolling five year average? This would keep more of the focus on longer term profitability. One obvious issue has always been that the accounting is often twisted to artificially pump up profits and therefore ceo salaries. The five year rule would also help with that since accounting shenannigans usually can't be maintained for too long. How about a salary based only on profits calculated on a rolling five year average? This would keep more of the focus on longer term profitability.

One obvious issue has always been that the accounting is often twisted to artificially pump up profits and therefore ceo salaries. The five year rule would also help with that since accounting shenannigans usually can’t be maintained for too long.

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