School of Management Professor James Post, an expert on corporate governance and business ethics, says the $210 million in retention bonuses for employees of bailed-out Fannie Mae and Freddie Mac are inappropriate under the economic circumstances.
“The news of retention bonuses at Fannie and Freddie gives me the same nauseous feeling I felt when looking at the newly released unemployment numbers. At a time when another 640,000 lost their jobs in the last month, bonuses ranging from a few hundred dollars to more than a million make no sense.
“Even if we assume the F&F employees are stellar performers, a ‘bonus culture’ should not be subsidized any longer. It is a mistake to turn them into mini-entrepreneurs, playing with public money. F&F employees are – emphatically – working for the citizens of this nation.
“So, two suggestions. First, start retraining the unemployed for those soon-to-be-vacated jobs at F&F. Second, eliminate the bonus culture from any organization receiving federal money. My strong suspicion is that those employees will still look forward to receiving their weekly or monthly paychecks.”
Contact James Post, 617-353-4162, firstname.lastname@example.org