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Summary

More than 100 years ago, author and humorist Mark Twain succinctly summarized the feeling of many today. That is, the calamity of a financial industry crisis that few anticipated and certainly fewer were prepared for. And it is no secret. The American public is confused and angry about the near total collapse of the financial services industry.  It is clear that the economic downturn is affecting many people and many people believe that the crisis has been perpetrated by senior executives who have pocketed exorbitant amounts of money.

Politicians and regulators have responded by instituting executive compensation limits and promising to crack down on executive excess and inappropriate perks. While no one would argue with the outrage and need to respond to executive excesses, it is important to step back from the emotion of the times and ensure that the desire to do something does not cause a number of unintended consequences that further damage what has become a fragile economic situation. The broad-brush reporting of this crisis has, we believe, unfairly assumed an organization’s use of corporate meetings, events and incentives as prima facie evidence of wrongdoing.

© 2008 Maritz
All Rights Reserved

Maritz

AMA Content Partners

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