Obama announces $500k salary cap on executive pay

[Apathy]

WASHINGTON — President Obama announced on Wednesday a salary cap of $500,000 for top executives at companies that receive the largest amounts of money under the $700 billion federal bailout, calling the step an expression not only of fairness but of “basic common sense.”

“We all need to take responsibility,” the president said, in discussing the compensation restrictions, which include an exception for restricted stock. He also used the occasion to prompt Congress once again to act on his separate economic stimulus program, whose cost could approach $1 trillion.

Mr. Obama repeated his comments that some Wall Street executives had shown “the height of irresponsibility” when millions of nonwealthy Americans were bearing the burden of Wall Street’s failures.

The people are sick and tired, Mr. Obama said, of seeing Wall Street executives come to the government “hat in hand when they were in trouble, even as they paid themselves customary lavish bonuses.”

http://www.nytimes.com/2009/02/05/us/politics/05pay.html?_r=1&hp

[Telmar]

Never thought I would see such measures in America.

[Albatross]

Should have put them on zero dollars and profit sharing only. feck em.

[Sanat-e-naft]

Good, as long as this is not for successful businesses I'm all for it.

If my taxes are keeping your crap company afloat, your boss better not be making more than half a mill. Only makes sense since you are asking for a hand out.

[philbob]

http://www.militaryphotos.net/forums/showthread.php?t=150916

[Apathy]

http://www.militaryphotos.net/forums/showthread.php?t=150916

What? How is that relevant to this?

[Sanat-e-naft]

What? How is that relevant to this?


They both have $500,000 in them?

[philbob]

he should clean house first.....

[Sanat-e-naft]

100,000 for a conference is not bad, I'm spending damn near 70,000 on a freggin wedding, and I'm not a Senator. IMHO the threads are not related.

[Zoomie]

Nothing but tough words from Obama. If you read between the lines, you'll see Obama's only making a big stink on TV, while really doing nothing. I say that, because the way his cap is worded, it only applies to companies that need “exceptional” assistance from TARP and contains an exception for stock options, provided they vest after taxpayers are fully repaid. (Non-exceptional TARP recipients can pay execs whatever they like so long as they disclose the amount) What exceptional means, who really knows.

[deagle]

corrupt ceo's will still find away to embezzzle and swindle taxpayer dollars. unless you[re republican, where you don't have to pay taxes. lol, but not really.

[brainplay]

corrupt ceo's will still find away to embezzzle and swindle taxpayer dollars. unless you[re republican, where you don't have to pay taxes. lol, but not really.

Hmmm, it seems its the Democrats that have the problems with paying taxes. Don't try to change the subject kid.

Normally I'd rant and rave against something like this. However, if they ask for government money then the government has the right to put down stipulations on what they can do with the money.

[American Patriot]

So basically now those TARP recipient companies will have to hire lower quality executives? That's really going to help them recover. If those companies want to hire some talent to turn their companies around and make them profitable again and all they can say is "we can only pay you $500k" when non bail out companies will pay the same guy $1 mil with bonuses where do you think hes going to accept

[Mr Gently Benevolent]

So basically now those TARP recipient companies will have to hire lower quality executives? That's really going to help them recover. If those companies want to hire some talent to turn their companies around and make them profitable again and all they can say is "we can only pay you $500k" when non bail out companies will pay the same guy $1 mil with bonuses where do you think hes going to acceptMost will hang on as they did in Japan when they went **** up, I think average average wages for execs in Japan at that time were x3 basic whie last year the US was as high as x379 basic and the UK was x39. From what I have heard many at trading desks are not earning their keep and everyone else are just treading water.

[Hot Lips]

Good, as long as this is not for successful businesses I'm all for it.

Many of these companies were successful at some point. Maybe you don't pay taxes for a handout to them today, but the ongoing impact of sending work outside the country, using illegal workers, laying off employees, cutting benfits and pay for domestic workers, etc rather than controlling bloated salaries, benefits, and spending at the top of the food chain, still impact you one way or another. We shouldn't allow this cycle to just begin again with other companies next go round.

[Flagg]

Many of these companies were successful at some point. Maybe you don't pay taxes for a handout to them today, but the ongoing impact of sending work outside the country, using illegal workers, laying off employees, cutting benfits and pay for domestic workers, etc rather than controlling bloated salaries, benefits, and spending at the top of the food chain, still impact you one way or another. We shouldn't allow this cycle to just begin again with other companies next go round.

this is a grandstanding gesture...the value is in the intangible political capital...it's like dropping a single lit match in the ocean in an attempt to boil it.

After the sobering conversations I had today I am now of the belief that nothing short of a total "reboot" is going to stop this disinflationary blaze.

My guess is President Obama burns through his finance gurus like Lincoln did with his generals....President Obama's new crew is the same as the old crew.

Same diseased and broken bod.....just a new voice

We get the politicians we want...rather than the statesmen we desperately need.

I am of the opinion that in 12-36 months the United States will financially reboot.....cascading from/to ever other major economy with the same result.

We cannot defy gravity

[DetailedEntrails]

Is there anything in motion to make this happen or is this just tough talk? While it seems great i dont see how something like that would happen without huge resistence.

[budgie]

Nothing but tough words from Obama. If you read between the lines, you'll see Obama's only making a big stink on TV, while really doing nothing. I say that, because the way his cap is worded, it only applies to companies that need “exceptional” assistance from TARP and contains an exception for stock options, provided they vest after taxpayers are fully repaid. (Non-exceptional TARP recipients can pay execs whatever they like so long as they disclose the amount) What exceptional means, who really knows.


yeah, it seems like it will be a hard rule to follow, so yeah - he's just saying this to score brownie points. People are angry because Wall St execs are overpaid and they're facing hard times so it sounds like a fair trade - the govt bails out your company but you have to take a hit for it. In reality, with these 'excptions' (exemptions, more like) we're unlikely to see successful CEOs making so little anytime soon.