I (hopefully shared by the nation) am in a complete state of shock about the egregious compensation to Kenneth Chenault, the CEO of American Express.  The Wall Street Journal reported today that Chenault earned salary, perks, and stock-based awards worth $36.3 million. The company's stock closed last Friday at $12.17, a twelve year low. In large part the stock's poor performance reflects poorly implemented expansion by American Express under Chenault into the traditional credit card business. That is, American Express began offering cards that allowed repayment over time rather than requiring repayment in full after 30 days. American Express received slightly over $3 billion in TARP funds; moreover, they have issued significant asset-backed debt backed by government guarantees given concerns over their credit status.

To me this egregious payment requires a forceful action by the government. That is, if the government does not demand a reduction of at least 90% of this payout to Chenault then "their get tough messages to Wall Street and especially TARP recipients" is just a paper tiger. Stated differently, Chenault's compensation challenges government credibility.