March 29, 2009
The Bonus Armies
Image by hyku via Flickr
Hilzoy figures out why folks are so p-oed about executive bonuses. It’s not totally about the douchebags who ran AIG into the ground (even if they were hard-working, profitable, probably actually fairly competent douchebags). It’s about the douchebags who ran the Philadelphia Inquirer and Philadelphia Daily News into the ground (and hundreds of other major businesses like it.
Philadelphia Media Holdings CEO Brian Tierney and his two underlings both got raises and bonuses just before the company declared bankruptcy and just after the papers’ unions voted to give back raises to help keep the company solvent. They still laid off hundreds of people and even stiffed the government by failing to turn over the payroll taxes, insurance premiums, and union dues they collected from their employees.
On top of that, Tierney went batshit crazy:
According to Newspaper Guild representative Bill Ross, Tierney once shook up a management meeting by barking “I will not lose my f*cking house over this!” And Ross says a couple of people emerged from a private meeting with the CEO claiming that he’d spoken to them, in his 12th-floor office, with a baseball bat in his hands. Ross also adds that in January, Tierney took to patrolling the parking garage, watching to see what time employees were arriving to work and asking managers about those who were late. “Thatís what I’m getting calls about now,” says Ross. “Heís walking around the parking garage. If he gets hit by a car, it’ll be his own fault.”
You know, I live in this town, and I never heard any of these stories until now. Obviously, my two local newspapers didn’t report them.
I think Hilzoy has a real point, though; outrage over lucrative bonuses paid to executives of companies in trouble IS in part a transference of anger coming from other places. But it’s not just general anger about the economy or plebeian ressentiment. It’s anger about this, about looting the store while pleading empty pockets.