So we get all this input. Then, I have all this stuff, all this data. Then, I ask the companies, come on in, what do you think? Not just the data–I’m no czar. That’s a terrible characterization of what I’m doing. First of all, my grandmother in Lithuania would be very confused [yes,] would be very confused by the title.
But aside from that, this has been a process of consensus building. I’m trying at least to understand why the companies claim what they claim.
So, we come in, meeting after meeting, on the phone, in person, trying to hammer out [No] 1 to 25. That’s how that works. And then finally, for the lawyers in the room, remember, I’m acting pursuant to federal law. There’s a statute, and there are accompanying Treasury regulations. And when you read the law, it is very, very difficult to gain a real key understanding of what Congress intended when it passed this law.
The special master shall, in determining compensation, make sure–make sure–that the companies thrive so that the taxpayers can get their money back. But the special master shall make sure, in determining compensation that compensation avoids, quote, excessive risk, unquote.
Then it says, but also make sure that the compensation that is set is grounded in prospective performance criteria that will reward merit. Then it says, but also make sure that in grounding your criteria in performance-based metrics, you do it in a way that will keep people where they are so that they’ll stay at the company, while avoiding excessive risk.
I mean, you try and balance all of what Congress and the regulations say, and you come up with a package. And that is the package that you announce. And you announce it by saying, this is what, in my sound discretion, I have concluded will satisfy the objectives articulated in the statute and in the regulations. Could you do it better? I guess maybe you could. You’d certainly do it differently. I’m sure people would do it differently. You want the job? Maybe the Secretary of the Treasury will appoint you.
But this is what I’ve done. And I think what I’ve done, and announced a couple of weeks ago, for compensation in 2009, is sound–satisfied the general criteria articulated in the law, and is what basically what Congress asked me to do. Maybe people would do it differently. I’ll have another chance in 2010.
Also, we are about to announce, by law, in the next month or so, these compensation structures for the seven companies–that’s what we’re doing right now.
Now, there are a couple of final overriding principles, and then I want to have time to take questions from you guys, who are the experts in this. There are a couple of overriding public policy considerations that I think are important to emphasize. Pearl mentioned some, Marty Lipton mentioned some. But I think it was Pearl who said, you know, Tiger Woods, Madonna–entertainers. Pearl, frankly, was pretty good, I thought. Tiger Woods, Madonna, and Pearl.