Tuesday, January 20, 2009

Obama's Inauguration Speech Missed Mark

President Barack Obama noted "our collective failure to make hard choices" in his inauguration speech. He used the line in reference to our economy. I respectfully disagree.

America's elected representatives and corporate executives failed to lead. Our corporatocracy is at fault. There is no collective failure, but abysmal leadership.

Pay for performance imploded Wall Street. Year after year CEO's were accountable for results, incentivized by executive compensation. They produced junk, selling innovative products as solid investments, however complex. Greed and leverage killed investing.

President Barack Obama wants "pay for performance" to improve education and health care. Teachers and doctors will game the system to optimize pay. Thirty percent of CEO's broke the law by backdating stock options, stealing from shareholders. Educators and healers are as smart as corporate executives.

Obama plans to change government by focusing on accountability, efficiency and transparency. Such practices were insufficient to save America's financial sector. Why will they work now?

Leadership is needed. Government's hallowed halls and plush corporate board rooms need profound knowledge. Quality leadership must be substituted. President Barack Obama missed this mark.