Obama administration to issue executive pay limits (taking Gov't $$$)

[UpInArms]

Source: Associated Press

WASHINGTON – The Obama administration plans to mandate new executive pay limits on Wednesday for government-assisted financial institutions in a new get-tough approach to bankers and Wall Street. "If the taxpayers are helping you, then you've got certain responsibilities to not be living high on the hog," President Barack Obama said in an interview Tuesday with "NBC Nightly News".

The president and members of Congress are weighing various proposals to restrict chief executives' compensation as one of the conditions of receiving help under the $700 billion financial bailout fund.

Obama did not reveal details of the administration's compensation caps. But administration officials have said that the new restrictions would apply only to those struggling large firms that receive "exceptional assistance," such as the American International Group Inc., Citigroup Inc., and Detroit automakers. They would not apply to healthy banks that receive government infusions of capital.

And Obama's chief economic adviser, Larry Summers, has proposed that firms that want to pay executives above a certain threshold would have to compensate them with stock that could not be sold or liquidated until they pay back the government funds.

Read more: http://news.yahoo.com/s/ap/20090204/ap_on_bi_ge/bailout_executive_pay

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It's about damn time!

[Sarah Ibarruri]

1. Oh thank goodness! nt

[Aaron1212]

2. it is about damn time...

it is about damn time, that someone controlling the bailout add some restrictions to it. but not only that i hope to see new regulation's for wall street so that things like the housing bubble and other bad decisions that destroy the American economy don't go unpunished or in the case of G.W. rewarded with more money.

[UpInArms]

4. Welcome to DU, Aaron1212!

Glad we are that you are here!

Let us all make a great noise and make this the day of reckoning for all those thieves!

:hi:

[tridim]

3. Watch the Republicans oppose it.

:)

[Aaron1212]

5. i bet they would oppose it and just for laughs they would call it socalist

[Zynx]

6. Not if they know what's good for them.

[Still Sensible]

11. I hope they do

so the roar they hear from the public will tear them new assholes!

[Myrina]

7. Dumb question:

What's to stop oompanies from establishing their HQ's (ie the parent company) offshore, so they're not subject to US Law such as limits on compensation, tax law, etc?

:shrug:

[stillcool]

9. If they're operating in this country they abide...

by the laws here.

[Tyler Generation]

8. but dat's commynism!

One day I'm gonna be rich and the guvment gonna give all my money to poor people!

[JerseygirlCT]

10. Good. Very good. nt

[katandmoon]

12. Why are healthy banks receiving "government infusions of capital"?

[UpInArms]

13. 'cuz they're welfare kings

the new and improved version - corporate welfare is the new and improved way of transferring all the money from the working class to those poor bankers who are in danger of losing their golden parachutes

[Waiting For Everyman]

14. Oh, this is going to be funny.

:popcorn: I can't wait for the whining and crying over this one. :nopity:

At least there's one good thing for them to keep in mind about it: they'll be paying less income tax. :P

[LiberalFighter]

15. Limit their pay to 20 times the lowest paid full time employee.

Limit their profit sharing to 20 times the lowest profit sharing of the paid full time employee. If employee receives 0 then 0 for CEO and other officers.

Limit their pension to 20 times the lowest pension of the lowest paid full time employee. If employee receives 0 then 0 for CEO and other officers.

[bonito]

16. And let's not forget random drug test as well, what's good for the geese...