Daily Lesson from Life 22 March 2009

Nothing worthy to comment on? Maybe the AIG 'bonuses' qualified. Or the 'tax the bonuses of those companies who needed taxpayers' money to exist by 90%' is another good candidate?

Well. They are. It also challenges conventional wisdom vs. vested interest's wisdom!

If your company will not even survive a single day without someone pumping money into it, how could you justify paying out bonuses?

There are legal liabilities to face if you are challenged but that could well be the last of your worries as you will need those money to keep the company afloat and live to fight another day! The lawyers will have a field day creating good and solid arguments for and against paying out the bonuses from the company's fund.

At the end of the day, if the suits go to court, the judges simply have to decide for themselves, is it reasonable to be paying the employees, high executives and talented they may be, over that of the shareholders, the employees, the secured lenders, the suppliers, the IRS, etc, etc. They will have to break new ground and rule on common senses. And common sense in this situation clearly points to: no ground to press for charges to pay out!!

Lessons for me are：

1. there are legal arguments and there are common sense. Use the common sense in uncommon situation!!;

2. do the right things on a moral ground even if the legal argument favored you (unthinkable but can happen in good old USA!) unless you need the bonuses to save life!! Are you that poor that you need that bonuses to buy your next simple meals and put your kids to normal schools?;

3. for those who argued that the 'special tax' is unfair. They need to look themselves in the mirror and asked: if there is no taxpayers' money, will the company be around, let alone to pay the bonuses! If is not simply about legality. It got to do with morality! Do the right things right is the hallmark of a true leader! No entitlement mentality.

The society and the business schools need to go back to the basic of personal integrity development. Money is good but if the only motivation for doing any work is money, I feared for that person and the society that encouraged such pursuit!