Want a little populist outrage? There's nothing like hearing it from a multi-millionaire advertising mogul with a spot on CNBC.
Donny Deutsch, the host of "The Big Idea," a show the network has shelved, explained to viewers on the March 25 broadcast of "CNBC Reports" he wants measures put in place to keep prevent people he regards as "idiots" from making $10 million a year.
"The issue is even now, with the new asset program, basically if it works, the taxpayer's taking up all the risk," Deutsch said. "God forbid it doesn't work, taxpayers are really going to take it on the chin. And let's say we get it right and the banks are lending again and everything is fine again - what is now put in place on Wall Street to make sure idiots are not getting paid $10 million a year?"
In December 2000, Ad Age reported Donny Deutsch signed off on a deal that sold his advertising agency with clients including Domino's Pizza, Mitsubishi Motors of America and Snapple to Interpublic Group. The report estimated Interpublic spent $200 million-$250 million in stock for the agency, which stock Deutsch had an 87-percent stake in according to New York magazine.
"That's my fundamental problem," Deutsch said. "There is such an out-of-whack compensation structure, entitlement structure."
Deutsch's co-host, Melissa Lee explained that if there was such a backlash against the compensation structure, it would be solved by the shareholders. Traditionally, executive compensation and salaries of every executive employee are decided by the company owners, or the shareholders, through the board of directors and the management team.
"If there is such a populist surge Donny, then we as shareholders, the collective ‘we' will vote against some of these schemes," Lee said. "We do have power."
Deutsch wasn't convinced, however his other co-host CNBC's Jeff Macke, founder and president of Macke Asset Management said the public shouldn't expect the U.S. Congress to solve the compensation crisis based on their recent performance.
"I'm sorry Donny, but were you spectacularly impressed with the level of questions and answers that we heard from the House and the Senate over the past couple of weeks?" Macke said.
Deutsch's answer had a touch of Plato's "The Republic" in it, calling for an education system that would "breed" executives and that would solve what he perceived as a lack of a value system.
"It's not going to come from government guys," Deutsch said. "That's my point - it's got to come from our education system. We got to start breeding executives. No guys, this is not a fairy tale - we're out-of-whack as a country. There's no value system. There's no sense of what's right and wrong. It is just what I can get, how I can wet beak, how much money I can take without any accountability. We've become a gluttonous society."
Macke retorted by pointing out politicians were pandering to the gluttonous society.
"And how many votes I can get by pandering to that society," Macke replied.
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Would this include hedge
March 26, 2009 - 14:32 ET by Insane ChipmunkWould this include hedge fund billionaires like Soros?
Don't you think the Dems will propose a windfall profits tax on him? I mean he's making money from others suffering just like those evil oil companies.
Do you see that proposal coming?
You mean George I'm having
March 26, 2009 - 16:13 ET by motherbeltYou mean George I'm having a very good crisis Soros?
Nah...they're OK with that, given where his money goes. They're not so sure about a lot of other people.
Has anyone else noticed that these people who complain about Wall Street Fatcats apparently have no problem with sports figures pulling down millions of dollars a year, not to mention actors who get paid 5-6 million for one picture or TV season?
I didn't think it was physically possible, but this both sucks and blows. -Bart Simpson
No, seriously guys......
March 26, 2009 - 14:47 ET by XJ.JonWe all know the Education System can fix anything in this country, and can certainly be trusted with this kind of responsibility.
Ha!
Taxed Enough Already
And who gets into these
March 26, 2009 - 14:52 ET by athoughtor2And who gets into these programs? who cooses the participants? sounds like the old Soviet Union picking who gets to play this sport or do this job or go to this school.
Huge difference
March 26, 2009 - 14:59 ET by KC MulvilleYou can teach about ethics, but that doesn't mean that the students all become ethical. In fact, if you teach ethics to an immoral person, all you've done is warned him how to evade punishment.
Instead, the way to "breed" successful management is to reward it when you find it, and not subsidize poor management. Unfortunately, that takes the collective day-to-day efforts of a lot of people. There is no magic solution; it requires vigilance and hard work.
One thing you don't do is bailout bad management. Oh never mind, nothing we can do about it now ...
KC... You said it
March 26, 2009 - 15:17 ET by bigtimerKC...
You said it all...your last line pretty well sums it up to where we are at...
I fear more to come before the govt. is done.
Doubling down on stupid is not a particularly good idea. ~Andrew Breitbart
Learning
March 26, 2009 - 18:48 ET by KC MulvilleYears from now, the management textbooks will be puzzling about what to make of these last few years. People who can't manage have brought the country to the brink of disaster, only to have the political and economic managers claim that they're too big to fail.
Have you followed any of the Geithner hearings in front of the preposterous Barney Frank? I've caught some of it on C-Span. What an embarrassment! These guys have plenty of theories about what went wrong, but they're clueless as to why. In their perspective, it was just greedy people being stupid. They've written it off as immoral greedy Wall Streeters. They're doing what they've always done - instead of learning, they demonized people.
"...calling for an
March 26, 2009 - 15:27 ET by Chris Norman"...calling for an education system that would "breed" executives and that would solve what he perceived as a lack of a value system."
Yeah, that education system can "breed" liberal "socially conscious" executives - much like it has bred the teachers, professors, attornies, judges...
The "Mainstream" Media: By liberals. For liberals.
Deutsch
March 26, 2009 - 15:34 ET by traderjamesHe has become the chief apologist for the Obama regime on CNBC. In the same program noted by the article, I heard him say, "we are so lucky to have Obama as president at this time in our history" Are ya kiddin' me?? He must feel the same 'tingle up his leg' as Brother Matthews on MSNBC, the Obamanation network.
I used to find his program quite interesting. Most of it was devoted to entrepeneurs who came up with this or that amazing product. You would think he would be for raw, uninhibited capitalism, having benefited from thus through the sale of his company.
Donny Deutsch guilty millionaire?
March 26, 2009 - 15:35 ET by woburn828Did anyone see the CNBC show some weeks back when a panel member shot at DD, "just because you were born on third base, does not mean you hit a triple". Deutsch was about to go through the screen. He is the perfect example of "thanks Dad". Dad started the business, he certainly expanded it, sold to the highest bidder and now wants to cap compensation on others. What a fraud.
Myth: Donny Dooch started
March 26, 2009 - 16:27 ET by Gat New YorkMyth: Donny Dooch started his own ad agency.
It did start as you said as David Deutsch Advertising and his father handed him the keys to the office.
Myth: Donny Dooch built successful brands with his agency.
He took targeted already successful brands and put his own spin on it and then attempted to take credit for their success.
Myth: Donny Dooch says he grew up on the streets of New York City.
He lived in an upscale section of the borough Queens and went to a very safe and good high school.
Donny never started a business - only inherited a business - and has never ran a business other than his ad agency (sometimes). he has always been known as an empty blowhard.
My new tag line
March 26, 2009 - 16:38 ET by jdlybrand"There is such an out-of whack compensation structure, entitlement structure." I guess people who work and are compensated for their efforts are now somehow 'entitled'? I thought entitlements went to the poor, oppressed, down-trodden victims in our society. Somebody get this guy a dictionary. While you're at it, get me a gun!
My new tag line...
Jeezmuhneez
The CEO and the Salesman
March 26, 2009 - 17:00 ET by allanfBack in the early 1960s the CEO of a giant company decided he did not want a mere "salesman" earning more money than he did. He limited the compensation of his salesment the next year.
His top salesman reached his maximum compensation level on January 15th. The salesman put a sign on his desk "gone fishing".
He then quit and founded a company that became a powerhouse and major competitior of his original company.
Thank you for your deep insight Donnie. I hope you don't make too much money.
Breeding !!!!!
March 26, 2009 - 18:28 ET by sccWe need to " breed " some real journalists in my opinion.
I Tell You What
March 26, 2009 - 20:22 ET by someloudthunderI swear I feel like I'm living in the Populist United States of the late 19th century.
"YEAH! Those evil people with money! They are hording it and making us poor! Let's kill them and take it because we deserve it."
I bet if you told some of those tools that are attack AGI that they actually hoard money and they have all the wealth in a vault they would try and bomb their executives houses to get to it.
Well, isn't this rich;
March 26, 2009 - 21:20 ET by TN MomWell, isn't this rich; CNBC's Donny Deutsch jumping on the class war fair bandwaggon.
If this is want they want, I expect congress to make an example of people like Deutsch, Soros, Rahm, Penny Prixter, Hollywood moguls, etc and tax their earnings 90%.
For the good of the country, of course.
hey DD
March 26, 2009 - 23:47 ET by GoodieGo back to Junior College...CA needs student losers like you.
O's Last Day 1-20-2013
Or sooner!
Seriously, we want to go there do we?
March 27, 2009 - 00:02 ET by JWFwhat is now put in place on Wall Street to make sure idiots are not getting paid $10 million a year?
Cuz, if we were giving all the money to idiots, Donny and everyone at MSNBC would get it all. There would be no money left for the rest of us.
Sincerely,
a Veteran of a 1000 psychic wars.
"Breed" Executives How Orwellian!
March 27, 2009 - 09:46 ET by happyuscitizenDonny doesn't want idiots making $10 million a year? Talk about the pot calling the kettle black, and proving true again the old adage, 'more money than sense'.
I bet he proposes measuring the shape of the skulls of all these wünderkinden, and even the color of their pupils. Yes they would be a master race of MBAs, CPAs, Hedge Fund Managers, and all look like Georgie Soros. Ahh, eugenics you're back and we've all miSSed ya, especially Donny Deutsch apparently.
In fact, Soros would be a handy resource; first for genetic material to model this new race on, and then since the admitted Nazi collaborator has had some experience in not only financial manipultions of a global scale, but also his experience in genocide.
Now all Donny has to do is recruit is new batch of Mengeles from the new wave of "volunteerism" the Great Leader is encouraging of AmeriKan youth. I can't wait for your next move Big Brother! A new dawn for Amerika!
So three cheers for Donny and his solution, thanks goodness we weren't
billed for this insight from his 9th Ave offices and got it over the
airwaves for free instead, thanks for the warning!