Bailed-Out Merryl Gives Billions In Bonuses

It's unforgivable. An affront to society, to justice, and to Americans' trust in the integrity of financial markets. Merryl Lynch management, which drove the company into the ground (forcing an eventual federally-assisted acquisition by Bank of America), recipient of billions in federal aid and guarantees, accelerated its bonus schedule and doled out $4 billion to its executives at the end of 2008. That makes $15 billion in bonuses for 2008...a year that saw ML lose $25 billion. And much of that bonus money will be taxed as capital gains, rather than ordinary income...

I've often said that one of the main problems with America's version of capitalism is that it entails no risk for those at the top entrusted with making decisions. Pay packages for the CEOs of even mid-sized companies are large enough to make them comfortable for life, even if they perform poorly. This skews incentives...corporate "leaders" will take risks that others (employees, shareholders, and now the public) have to bear, in hopes of a gigantic payday. And sometimes, they get that payday even when they fail.

Walgreens, Your Hypocritical Drugstore

A few weeks ago the San Francisco Board of Supervisors passed an ordinance prohibiting the sale of tobacco in drug stores within city limits. It was a common-sense move: you don't go to a drugstore to buy something that harms your health and the health of others around you. So why is Walgreens suing the city to prevent the ordinance from being enforced?

From Walgreens' own site:

Blow the Whistle on Asthma
More than 25 million Americans are living with chronic lung disease. Every year, close to 361,000 (or one in seven) Americans die of lung disease, making it the nation's number three killer. Walgreens proudly supports the American Lung Association in its mission to prevent lung disease and promote lung health through research, advocacy and education. In the fall of 2003, Walgreens Health Initiatives sponsored several ALA Blow the Whistle on Asthma walks in Illinois to help raise funds for important asthma research and programs. Consumers with questions about lung health can call the ALA's free hotline at 1-800-548-8252. The lines are supported by registered nurses and respiratory therapists.

The page goes on to list its philanthropic efforts, including the American Cancer Association. So who's going to blow the whistle on Walgreens?