Martin Varsavsky: Compensation clash in the making

by Martin Varsavsky [courtesy of Politics on HuffingtonPost.com]

Salaries in the US government are low compared to the private sector. Salaries in the banking world are the highest in the world. Last year the top investment banks paid out $33 billion dollars in bonuses to their employees. Average compensation among managers of investment banks was over a million dollars a year. Now that the US government will own part or all of these institutions, how is the US government explain how the salaries of these people who brought us all down deserve to be so much higher than their own?