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TUESDAY, NOVEMBER 24, 2009
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 OPINION 
1

Taxpayers Must Become Activist Investors: Icahn

What the government did at GM should be a lesson: get rid of bad leadership

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(Newser) – Barney Frank was right when he said a retention bonus is “a nice word, it turns out, for extortion,” writes Carl Icahn for the Huffington Post. “Very few managers are irreplaceable, especially in this economy”—so why do they get paid extra to stay with a company they've run into the ground? “In many cases, the companies are better off without them,” Icahn contends.

Rick Wagoner's ouster from the top job at General Motors was a hopeful sign, because it indicated President Obama isn't afraid to throw the bailout's weight around. “In effect, the government has become the world's biggest activist investor,” Icahn writes, “making the same kinds of demands that any activist or creditor should rightfully make in return for its investment.”

In this Cot. 11, 2007 file photo, private equity investor and chairman of ImCLone, Carl Icahn speaks at the World Business Forum in New York.
In this Cot. 11, 2007 file photo, private equity investor and chairman of ImCLone, Carl Icahn speaks at the World Business Forum in New York.   (AP Photo/Mark Lennihan, file)
General Motors Chairman and Chief Executive Rick Wagoner talks about the company's restructuring plans during a news conference in Detroit, Tuesday, Feb. 17, 2009.
General Motors Chairman and Chief Executive Rick Wagoner talks about the company's restructuring plans during a news conference in Detroit, Tuesday, Feb. 17, 2009.   (AP Photo/Carlos Osorio)
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Why should the very managements that got the company into trouble get enormous payouts? In many cases, the companies are better off without them.
- Carl Icahn

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Reader2795
Apr 16, 09 11:16 AM CDT
As Carl has indicated it is the primary reason the big boys are offering to pay back TARP as quickly as possible to Save their Jobs. They can't handle the scrutiny and transparency required. If the government can't do it then the "old ways will continued to be perpetuated. These fat cats are just like us; motivated by the human adaptation syndrome. Opting for Flight versus Right, and Fight for the great good. To them the greatest good is themselves. I use to have alot of respect for Diamond, but know that is lost. Reply
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