U.S. Plans $500,000 Cap on Executive Pay in Bailouts

[kpete]

Source: New York Times

WASHINGTON — The Obama administration is expected to impose a cap of $500,000 for top executives at companies that receive large amounts of bailout money, according to people familiar with the plan.

Executives would also be prohibited from receiving any bonuses above their base pay, except for normal stock dividends.

President Obama and Treasury Secretary Timothy F. Geithner plan to announce the executive compensation plan on Wednesday morning at the White House.

The new rules would be far tougher than any restrictions imposed during the Bush administration, and they could force executives to accept deep reductions in their current pay. They come amid rising public fury about huge pay packages for executives at financial companies being propped up by federal tax dollars.


Read more: http://www.nytimes.com/2009/02/04/business/04pay.html

[WriteDown]

1. My theory...

They'll find some way around this. It will by in the form of physical items, new bmw's, golf memberships, houses, etc.

[w4rma]

2. Basically the managements are looting the companies they are working for. (nt)

[kmac3]

3. Better yet . . . .

If Board Memmbers were doing their job and protecting the stockholders there would be no salary for an executive if a company was failing and continued to fail after a given time frame!

[greiner3]

4. But won't that mean;

That the heads of these companies will have to file for Food Stamps and Welfare. Why are the republicans looking to increase the welfare rolls?

[sarcasmo]

5. We all know which way the Republicans will vote. I hope he can get this passed.

The Tool in charge of Bank of American makes 20 Million a year, imagine how many families that could support.