Everyone complains about fat banker bonuses, but Bosch Chief Executive Franz Fehrenbach is taking the debate to a new level. The head of the world’s biggest car parts maker is going to review ties with its financiers and may break off business with those that pay excessive bonuses, he told reporters. “We find it irresponsible if some big banks more or less go back to business as usual before the crisis despite what we have gone through,” he said. He cited HSBC and JP Morgan as positive examples of good corporate behaviour. Of course it’s easier to be picky when you are unlisted and generate huge cash flow.
But how exactly do you cap greed and stupidity, the driving forces behind today’s property boom-and-bust and past examples of “irrational exuberance” like the dot.com bubble?
Craig Barrett, chairman of chipmaker Intel, was not optimistic when he dropped into Reuters offices in London.