The Rich Are More Trustworthy

["Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>]

Jack Welch interview:

COLVIN: Let's talk about another aspect, which is corporate governance.
Lots of talk about reform, independent chairmen. What do you think's a
good idea and what's bad?

WELCH: Geoff, I think the major issue here is let's watch out for
unintended consequences.

COLVIN: Meaning?

WELCH: Meaning that we put a million dollar cap in on salaries, so
people went to options, markets took off, people made a lot of money. We
wanted to align the interests of both at that time, okay? The
independent director issue worries me to death, because what do you want
out of a director? You want intelligence, common sense, independence,
the willingness to speak out. If you get people that the compensation of
the board, their compensation on the board is critical, I think they're
less likely to. No offense to faculty members or foundation heads, but
the income from a board is more significant to them than a wealthy
person who might have a one percent conflict.

http://drudgereport.com/jw.htm

The record shows that greed has never been reduced by wealth.
Welch's condenscening putdown of faculty memebers is indicative of what
is wrong with the system.
I have a solution: lets pay faculty members tens of millions.  After
all, they take care of the next generation of wealth producers.  How
about paying faculty members 1% of the wealth created by all their
students?

Someday, a book will be written on how Jack ran GE like a Ponzi scheme.
It is already known on the street as the house of debt that Jack built.

Henry C.K. Liu