Lawmakers' Goal to Cap Executive Pay Meets Resistance

[Amerigo Vespucci]

Source: The Washington Post

Congressional efforts to impose stringent restrictions on executive compensation appeared to be evaporating yesterday as House and Senate negotiators worked to fine-tune the compromise stimulus bill.

Provisions to impose a penalty on banks that paid hefty bonuses and to cap pay at $400,000 for all employees at firms applying for additional government funds did not survive the compromise, sources said.

The situation was in flux last night, but provisions in the Senate bill that called for a ban on bonuses for all companies receiving government funds also appeared to be headed to the chopping block, congressional sources said.

The provisions would go further than those announced by the Obama administration last week. They would target the 359 banks that have received government aid and essentially prohibit companies from paying anything other than a base salary, analysts said. The 25 highest-paid executives at each company would be subject to the ban.

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2009/02/11/AR2009021104488.html

[babylonsister]

1. I'm hoping restrictions will go into the final of the TARP.

Barney Frank seemed intent on that happening.

[judy]

2. stringent restrictions???

$400,000? or $500,000 are STRINGENT restrictions???
Give me a break!!

How many mansions, yachts, etc. can one person have? Reminds me of the dialog in "Chinatown" between Jack Nicholson and John Huston. What more do you want? "The future, Mr. Gittes, the future!" says the villain.
This is depressing...

[Lugnut]

3. I'm not resisting.

I doubt that most taxpayers are either. I guess they forgot that they work for us.