This weekend I was thinking about the huge amount of money that the auto industry is looking for as part of a "Bailout Package".
Then I had an idea: Management and all senior executives should have a very real incentive to perform. They need to have some of their own wealth at stake.
My idea is simple. Congress should insist that a large percentage of the bonuses paid to senior management over the last 10 years be repaid to the Fed, with the agreement that if, as and when the auto companies are able to turn their businesses around, these amounts would be released back to these executives.
This way, management would have a serious vested interest in getting these companies profitable again.
Without such onerous conditions placed upon, management could still fail after receiving the billions they're asking for and yet walk away with vaste fortunes in their private capacity.
Enough is enough. There needs to be real accountability and responsibility.
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