It’s been a while since I’ve put anything up on this space. I had a whole bunch of personal stuff going on this summer, including starting a very demanding new job. Hopefully, some of you are still reading.

I have a 90 mile a day commute. It gives me a lot of time to think. I had an idea this morning that I believe is simple, but also pretty damn clever. My proposal for a simple reform as part of the supposed reform of our financial system that’s on the horizon is this: No one who works in a regulated financial services, banking, or insurance organization can make more money in bonus or commission than they make in salary. Let’s put that hefty compensation right there on the books as a regular, recurring cost. If you think an employee might be worth $100 million dollars a year, you pay him $50 million and let him make the other half in bonus. If you don’t think an employee is worth that guaranteed $50 million a year, then maybe you should rethink what you’re paying him and others like him. I’m sure that the toady boards of directors probably wouldn’t have a problem approving outrageous salaries like this at many companies, but I bet their shareholders would.

This isn’t a cure for, well, almost anything, but it’s an idea that I like and that could be easily implemented. What do you think?

This entry was posted on Tuesday, September 15th, 2009 at 9:32 am and is filed under blog. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.