Speaking of Deficits
The PCAOB, in its first meeting yesterday voted to pay its members $452,000 per year, which is $50,000 more than the U.S. President makes, and more than triple the salary of the S.E.C. chairman and Supreme Court Justices. It also voted to borrow $1.9 million to cover its expenses for this month, while it waits for Congressional funding of $540-$776 million a year, or so. The board also rented office space formerly held by the bankrupt Arthur Anderson accounting firm.And I thought, he's so funny. What a card. Hey this can't be true... Or could it? Well, holy shite it is.
Other topics covered in the board's first meeting:Ah yes, as an investor I feel so much better that the "public trust" is being protected by beauracrats that will forever be motivated in maintaining and increasing their salaries. Salaries that are set by the gov't itself. I have no idea if they are worth the money they are being paid. How will I know if they are doing a good job? How will I know if they are effective? If everybody behaves themselves will they cause problems just to justify their existence? In the case of the jackasses at Andersen they are gone, bankrupt. Their business relied on credibility. This oversight board will never go bankrupt, and the only time anybody is going to be fired is if these guys screw up royally. But if some more miscreants are found, who is really at fault? Is it the board or the miscreant? The miscreant, of course.
Board member salaries. The five board members agreed to set their own pay in line with the pay of Financial Accounting Standards Board members. FASB members are paid $452,000 a year, the chairman $556,000.
Nice work if you can get it, set your salary at half a million (don't want to seem greedy). Basically, the chances of fraud are already so tiny that you don't need to do any real work, you just need to pretend you are doing something. If a problem arises its not your fault, its the "criminal's".