nutcracker Time Out

This weekend I had the pleasure of attending the Boston Ballet’s performance of The Nutcracker. Within the grandeur of the Opera House on a snowy December day, it was a transportive delight to behold. I was so lost in the performance that when Mikko Nissinen, the Ballet’s artistic director, spoke to the crowd after the curtain call I couldn’t believe it when he thanked everyone for coming out on a cold, stormy afternoon. Through the magic of the performance and the surroundings, I had completely forgotten that we were attending a matinee. Instead I felt teleported into the Kingdom of the Sweets where Clara watches the dancers salute her courage.

But sadly more arresting was the fact that, as Nissinen thanked the audience for their participation and support, countless members went rushing for the exits. In this day and age, we have less and less time to pay attention to anyone. Our focus stays fixed on our appointments and commitments, precluding any time for listening or reflection. I found this affront particularly bothersome, as Nissinen was performing another act so often left out of modern times, gratitude. Nissinen was truly grateful not only to all those in attendance, but also to the hard work of all the participants in the performance. He carefully highlighted the dedication of the dancers, the efforts of the set designers, the skill of the musicians who were obscured by an orchestra pit still under construction. He also took time to note the progress of the Ballet in finally securing a forthcoming residence at the Opera House after years of limbo between there, the Citi Theatre and the Majestic. More importantly, he spoke to the beauty and importance of art. Praising the audience for supporting such a crucial cultural aspect, which in turn enables the Ballet’s continued efforts to bring the arts into our schools and offer under-privileged children the opportunity to attend performances. His sentiments had a resonance that equaled the beauty of Tchaikovksy’s timeless music, for it is the arts that keep beauty alive in our society.

The Nutcracker was first performed in St. Petersburg in 1892, today it is performed annually around the world. But as we develop greater dependence on iPods, Blackberrys, and cell phones, as we choose to Tivo, and buy DVDs to watch even in our cars, we are further distancing ourselves from art, and more tragically from ourselves. Our economic fragility certainly provides greater strain, yet it cannot be just another excuse. The more we run around from place to place we must ask ourselves what we are rushing to. Hundreds of men, women, and children collaborated in that performance, one man chose to embrace the audience and remind them they were a part of it as well. More people should have listened. Art is a participatory event. And should stay with us after the curtain falls.

Dire Straits

With each passing day, the U.S. financial sector’s culture of greed comes more sharply into view. Today marks the release of an Associated Press study reporting that, at the 116 banks that have received government bailout funds, the top 600 executives received a disquieting $1.6 billion in compensation. That is not to say that the bailout has provided the funding for that compensation, which represents the aggregate payout for 2007 salaries, bonuses, and other benefits. However, it is a very clear indication of how these corporations found themselves in such a perilous economic state. The burden of these absurd figures hollowed out the foundation of their enterprise. The concentration of lavish compensation at the top enabled a culture of neglect and indifference that poured from the top down. Certainly, finance is not the only industry susceptible to this trend, the recent turmoil of our economy is representative of abuses that are endemic across corporate America and beyond. Yet it is the financial sector that has appealed to, and won, the backing of the federal government, and therefore enabled us a glimpse into their warped value system. Despite the previous collapse of diseased giants like Enron, WorldCom, Arthur Anderson, and Tyco, the C-level push for greater power and wealth never abated. Any public outcry was directed only at the fallen giants, and we receded further into our own chosen oblivion, working and waiting for our own financial windfall.

The economic events of 2008 have now displayed the cost of our inaction. As more and more people join the ranks of the unemployed, we can only hope that this time, for ourselves and for generations forward, we shine a light of social responsibility and awareness on our captains of industry, who have previously behaved more like captains of piracy. Yes, the top 5 executives at Goldman Sachs have announced that they will forego any bonuses for 2008. But, despite some articles below that express sympathy and admiration for that action, how can any of us feel sympathetic towards men who received a combined $242 million in 2007? As CEO, Lloyd Bankfein alone received a staggering $54 million. Now, after posting their first loss since going public in 1999, these same men have graciously conceded to cap their 2008 compensation at their base salaries of $600,000 apiece. Such behavior deserves no merit, it is responsible business. If the company posts a profit, the wealth should be shared. If the company posts a loss, bonuses have to be scaled back. But when compensation reaches the dizzying heights that these 5 men and others of their ilk became accustomed and entitled to, it is absolutely no wonder that our economy is collapsing.

John Thain, now CEO of Merrill Lynch, led all corporate bank leaders with $83 million in compensation last year. Part of that was for his time with his former employer, Goldman Sachs, but when he ascended to the top spot of Merrill last December, he was awarded a $15 million signing bonus, in spite of the fact that company posted an annual loss of $7.8 billion. And as the year progressed, the once venerable Merrill sunk even further into the morass. In order to survive, Merrill agreed to be acquired by Bank of America, a move that has received all necessary board and federal approval. But despite the failure of his own leadership to rescue Merrill Lynch, Thain had the audacity to ask the board for an additional $10 million bonus. Not only has the value of the impending merger with B of A diminished by over 40%, Merrill Lynch has won $10 billion in federal funds to stay afloat. In that sense, all taxpayers are now minority owners of the company, just as they are with Goldman Sachs and 114 other banks. And we have earned the right to say that these compensation levels are egregious, outrageous, and in need of extermination.

No executive is worth the kind of money these fools have determined for themselves. I am not in favor of putting caps on salaries but I do believe in the principles of social responsibility. If Goldman is now cutting overall corporate compensation by 42%, with the aid of shedding 1500 jobs, it is clear by their previous practices they are inefficient and in need of a drastic overhaul. But the predicament is certainly less likely the responsibility of the 1500 individuals cut loose at Goldman than those that are still sitting at the top level expecting sympathy for their pay cut.

Goldman is not alone, all of these companies, and the environment they have reveled in, need to be shaken up. The bailout assistance provided by the government cannot be reduced to a subsidy for maintaining the status quo. Profits have been inflated, imagined, and created, they have not been earned. The result is an economy in tatters. The pillars of finance are shaken. The relentless avarice of C-level execs demanding higher and higher payouts simply to compete with one another like children comparing toys has devastated our nation and the world. The complete price of their selfishness has yet to be paid, we cannot expect to know the true cost for years to come. And allow me to reiterate that this rampant gluttony has not been exclusive to the finance industry, but their appeal for government assistance has allowed this window into their distorted ways. Perhaps we will soon see concrete evidence of similar abuses by the Big Three automakers. For now, this is what we know, and each day we are learning more. And each day you can look at your morning news and see other examples of further corrosion from Tom Blagojevech to Bernard Madoff and beyond, they are everywhere and in every sector. As more of us lose our jobs and our savings, we can focus our anger on those that have betrayed us. But it is not a spectator sport. While those that have profited from their plunder may be hurt or halted in their tracks, it is only with continued public vigilance that we can ensure greater regulation and oversight to prevent such entitlement and abuse from contaminating our society any further. What we are experiencing now is not new, it is a story as old as human history, and it will never be extinct. But for those of us that don’t care to remember back that far, just think of Enron, or WorldCom, and those corporate abuses that struck as all a few short years ago. And realize that if we just turn the page or click on another site, and allow the focus to move onto another story, the plague will metastasize and become greater than anything that we have ever experienced. That is where we find ourselves today.

AP study finds $1.6B went to bailed-out bank execs

http://www.google.com/hostednews/ap/article/ALeqM5j4du5x_AukGeVZ5Rli1iFTG1jEWgD957KSMG0

Responses by Banks on Their Use of TARP Funds

ABC News’ Survey of 16 TARP Banks

http://abcnews.go.com/Business/Business/story?id=6479932&page=1