The more you have, more will be given to you. The less you have, what you have will be taken away. It seems this is how the world works.

Why do banking and finance executives get paid obscene amounts of money for failing the company shareholders and for helping to bring down the economy, even when they quit or get laid off? It widens the wealth gap a little and it drives little kids to dream about a career in banking.

If you pick up an $100 bill on the street when no one’s looking, do you keep it? To outsiders, this is exactly what happened to the bankers who cashed in on the credit crisis.

The New York Times reports on some companies that have policies for returning undeserved executive pay. General Electric (NYSE: GE) has a policy for the board to ask for a refund from executives who have committed fraud or international misconduct. Citigroup (NYSE: C) has a policy to seek reimbursement or cancel employee stock issues. Qwest Communications International (NYSE: Q) has the broadest policy on the matter:

Its directors will review all performance pay awarded to executives that was based on the periods during which the results changed.

Perhaps it is jealousy that keeps executive compensation in check, however it is more likely that shareholders don’t want companies to overpay executives and screw up the company’s earnings.

Disclosure: I do not hold any of the above-mentioned companies.

Disclaimer