Friday, September 25, 2015

Nice Work

As I wrote, individual and firm incentives are not very well aligned. Cheat your way to riches, and leave the shareholders with the bill when you get caught.
Martin Winterkorn, faced with the company's widening crisis over its rigging of emissions tests, announced his resignation as CEO of Volkswagen Group Wednesday. He is likely to leave with a pension valued around $32 million, and possibly with many millions more, depending on what the board decides regarding his severance payment.

If only there was some way to punish the individuals responsible within our legal system. Any ideas?