Nathan Andrada’s Blog

Executives from struggling financial firms Wachovia, Merrill Lynch, and Morgan Stanley have already committed to defer their bonuses this year. It is a gesture by Wall Street to cut their costs in light of the global financial and economic crisis. Now that the US is in recession, thanks mostly to many of their financial companies, it sure does make sense for their top executives not to receive any bonus. 

Here in the Philippines, the government not only owns but has significant stake in various corporations. The perks and bonuses of many of the executives, at the helm of these corporations, are enormous to say the least. Now that the country’s economy is expected to slow down next year to 3.5-4.5 percent, the government should consider cutting if not defer the bonuses of the executives of the GOCCs (Government-owned and controlled corporations).

Now that the Php1.4 trillion budget for next year is almost a certainty, unless the conservatives in the Senate can salvage a last-minute effort to bring it down, Congress must act to make sure bulk of that spending will be allocated to provide relief for the poor and projects that create jobs. The Senate must make sure that while the economy is threading a dangerous path next year, the executives of GOCCs won’t be spending taxpayer’s money on new luxury cars and overseas trips.